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HomeMy WebLinkAboutCOUNCIL - COMPLETE AGENDA - 10/28/2025Fort Collins City Council Work Session Agenda 6:00 p.m., Tuesday, October 28, 2025 300 Laporte Avenue, Fort Collins, CO 80521 NOTICE: Work Sessions of the City Council are generally held on the 2nd and 4th Tuesdays of each month. Meetings are conducted in a hybrid format, however there is no public participation permitted in a work se ssion. City Council members may participate in this meeting via electronic means pursuant to their adopted policies and protocol. How to view this Meeting: Meetings are open to the public and can be attended in person by anyone. Meetings are televised live on Channels 14 & 881 on cable television. Meetings are livestreamed on the City's website, fcgov.com/fctv. Upon request, the City of Fort Collins will provide language access services for individuals who have limited English proficiency, or auxiliary aids and services for individuals with disabilities, to access City services, programs and activities. Contact 970.221.6515 (V/TDD: Dial 711 for Relay Colorado) for assistance. Please provide 48 hours’ advance notice when possible. A solicitud, la Ciudad de Fort Collins proporcionará servicios de acceso a idiomas para personas que no dominan el idioma inglés, o ayudas y servicios auxiliares para personas con discapacidad, para que puedan acceder a los servicios, programas y actividades de la Ciudad. Para asistencia, llame al 970.221.6515 (V/TDD: Marque 711 para Relay Colorado). Por favor proporcione 48 horas de aviso previo cuando sea posible. While work sessions do not include public comment, mail comments about any item on the agenda to cityleaders@fcgov.com Meeting agendas, minutes, and archived videos are available on the City's meeting portal at https://fortcollins-co.municodemeetings.com/ City of Fort Collins Page 1 of 2 City Council Work Session Agenda October 28, 2025 at 6:00 PM Jeni Arndt, Mayor Emily Francis, District 6, Mayor Pro Tem Susan Gutowsky, District 1 Julie Pignataro, District 2 Tricia Canonico, District 3 Melanie Potyondy, District 4 Kelly Ohlson, District 5 Council Information Center (CIC) 300 Laporte Avenue, Fort Collins Cablecast on FCTV Channel 14 on Connexion Channel 14 and 881 on Comcast Carrie Daggett Kelly DiMartino Delynn Coldiron City Attorney City Manager City Clerk CITY COUNCIL WORK SESSION 6:00 PM A) CALL MEETING TO ORDER B) ITEMS FOR DISCUSSION 1. Staff Report: Our Climate Future Goals and Renewable Electricity Progress The purpose of this item is to update Council on Our Climate Future Goals and Renewable Electricity Progress. 2. Our Climate Future Strategic Funding Plan – Phase I The purpose of this item is to present Phase I of the Our Climate Future (OCF) Strategic Funding Plan, which maps out how the City can strategically allocate climate-related revenue streams – including the 2050 Tax (climate portion), single-use bag fee remittances, and Utilities Electric Rate- Payer Funding– over a 15-year horizon to achieve carbon neutrality by 2050. The full Plan will be completed in Q1 2026 after incorporating Council feedback and will prioritize investments within the 13 OCF Big Moves focused on strategic impact, people-centered solutions, and alignment with Council Priorities. 3. Transfort Optimization Plan The purpose of this item is to present the Transfort Optimization Plan, fiscally constrained, short - range service plan that aligns Fort Collins’ transit network with current financial realities, community needs, and long-term sustainability goals, with a focus towards increasing ridership and better serving transit-reliant populations and high-travel corridors. Developed through extensive public engagement, data analysis, and national best practices, the plan prioritizes frequency, reliability, and equitable access while maintaining a fare-free system. The recommended scenario establishes a streamlined, grid-based network that strengthens high-demand corridors, improves connectivity to key destinations, and operates within available resources. It also updates Dial-A- Ride and Dial-A-Taxi services to maintain flexibility while meeting ADA requirements and introduces a new safety and security partnership with Police Services. Together, these efforts position Transfort to deliver a more efficient, sustainable, and community-focused transit system that remains adaptable to future funding and evolving needs. Page 1 City of Fort Collins Page 2 of 2 4. Building Performance Standards The purpose of this item is to discuss the proposed Building Performance Standards (BPS) policy including updates since the last work session. Staff seek Councilmember feedback on policy before a possible first reading. Staff recommend a regulatory strategy for reducing building energy use and emissions. Input from affected groups shaped the policy recommendations outlined in this work session and associated materials. BPS policy work aligns with the 2024-2026 adopted Council priorities and the Our Climate Future (OCF) plan; specifically, the goal of an 80% greenhouse gas emission reduction by 2030 and Big Move 6: Efficient, Emissions Free Buildings. C) ANNOUNCEMENTS D) ADJOURNMENT Upon request, the City of Fort Collins will provide language access services for individuals who have limited English proficiency, or auxiliary aids and services for individuals with disabilities, to access City services, programs and activities. Contact 970.221.6515 (V/TDD: Dial 711 for Relay Colorado) for assistance. Please provide advance notice. Requests for interpretation at a meeting should be made by noon the day before. A solicitud, la Ciudad de Fort Collins proporcionará servicios de acceso a idiomas para personas que no dominan el idioma inglés, o ayudas y servicios auxiliares para personas con discapacidad, para que puedan acceder a los servicios, programas y actividades de la Ciudad. Para asistencia, llame al 970.221.6515 (V/TDD: Marque 711 para Relay Colorado). Por favor proporcione aviso previo. Las solicitudes de interpretación en una reunión deben realizarse antes del mediodía del día anterior. Page 2 File Attachments for Item: 1. Staff Report: Our Climate Future Goals and Renewable Electricity Progress The purpose of this item is to update Council on Our Climate Future Goals and Renewable Electricity Progress. Page 3 City Council Work Session Agenda Item Summary – City of Fort Collins Page 1 of 1 October 28, 2025 WORK SESSION AGENDA ITEM SUMMARY City Council PRESENTER Brian Tholl, Energy Services Director SUBJECT FOR DISCUSSION Staff Report: Our Climate Future Goals and Renewable Electricity Progress EXECUTIVE SUMMARY The purpose of this item is to update Council on Our Climate Future Goals and Renewable Electricity Progress. ATTACHMENTS 1. Presentation Page 4 Item 1. Headline Copy Goes Here Energy Services Director Brian Tholl Our Climate Future Goals and Renewable Electricity Progress 10/28/25 Page 5 Item 1. Headline Copy Goes Here Our Climate Future Goals 2 Page 6 Item 1. Headline Copy Goes HereOCF Energy Related Goals and Status Overview Goal Definition What’s Included Target Year & Status Carbon Emissions Goals Emissions from all community inventory resources Petroleum, natural gas, electricity, waste, industrial ⯀2026 -At risk ⯀2030 -Off track ⯀2050 -At risk 100% Renewable Electricity Fort Collins has more renewable electricity available than it uses % of electricity from non-carbon sources ⯀2030 -On track 5% Local Renewables 5% of electricity use from local renewable sources % of grid electricity from local non-carbon sources ⯀2030 -On track 5% Grid Flexibility Shift 5% of peak electricity loads Flexing electricity from one time to another ⯀2030 -On track 3 Page 7 Item 1. Headline Copy Goes Here 4 100% Renewable Goals: Consumption vs. Generation 100% Renewable Consumption 100% Renewable Generation Policy Our Climate Future Plan & Council Resolution 2018-094 Resource Diversification Policy How It’s Measured Renewables Generation ÷ Community Consumption (annual kWh) Renewable Generation ÷ Platte River Generation (annual kWh) Progress 48% in 2024 100% in 2030 (target year) 37% in 2024 88% in 2030 (target year) Benchmarks Peer cities & distribution utilities Generation authorities Community Role Efficiency, conservation & local renewable (solar) Grid flexibility & Virtual Power Plant (VPP) efforts Page 8 Item 1. Headline Copy Goes Here 5 100% Renewable Goals: Consumption vs. Generation 100% Renewable Consumption 100% Renewable Generation Policy Our Climate Future Plan & Council Resolution 2018-094 Resource Diversification Policy How It’s Measured Renewables Generation ÷ Community Consumption (annual kWh) Renewable Generation ÷ Platte River Generation (annual kWh) Progress 48% in 2024 100% in 2030 (target year) 37% in 2024 88% in 2030 (target year) Benchmarks Peer cities & distribution utilities Generation authorities Community Role Efficiency, conservation & local renewable (solar) Grid flexibility & Virtual Power Plant (VPP) efforts Page 9 Item 1. Headline Copy Goes Here 6 Renewable Supply Projects: 2025-2028 Roadmap 2025 Add: 150 MW Black Hollow Sun solar project (Phase 1) Retire: 77 MW Craig Unit 1 2026 Add: Black Hollow Sun solar project (Phase 2) & utility- scale battery storage project Join: Southwest Power Pool’s regional transmission organization 2027 Add: Four-hour battery storage in each owner community 2028 Submit: 2028 Integrated Resource Plan (IRP) Add: Future wind project & aeroderivative turbines Retire: Craig Unit 2 Page 10 Item 1. Headline Copy Goes Here 7 Supporting Electricity Goals: Local Solar Progress Status On track Current 3.4% in 2024 Forecast 5.0% in 2030 2024 Peer City Benchmarks Fort Collins 237 (40 MW total) Longmont 80 (8 MW total) 2022 Shining Cities Report Denver 189 Salt Lake City 183 Los Angeles 166 Fort Collins 165 Sacramento 160 How We Compare (watts per capita) 5% Local Solar by 2030 Page 11 Item 1. Headline Copy Goes Here 8 Demand Side: Strategies for Decarbonization Page 12 Item 1. Headline Copy Goes Here 9 Impacts: All Methods and Areas Develop framework for strategic allocation of City funding, including 2050 tax revenue, to accelerate climate action •Our Climate Future –Driven •2050 Carbon neutral emissions •100% Renewable Electricity •Zero waste goal OCF Strategic Funding Plan Page 13 Item 1. Headline Copy Goes Here Determine most optimal way to deliver transit service to community using combination of bus routes and micro- transit options. •OCF Beneficial o Reduced vehicle miles traveled o Petroleum emissions reduction Transfort Optimization Plan 10 Impacts: Transportation Planning & Infrastructure Page 14 Item 1. Headline Copy Goes Here Develop policy framework for improving performance of built environment •OCF Driven o Building emissions reduction o Optimize energy use for pursuing 100% renewable electricity Building Performance Standards Policy 11 Impacts: Existing Commercial & Multifamily Buildings Page 15 Item 1. Headline Copy Goes Here Questions? btholl@fcgov.com 12 Page 16 Item 1. File Attachments for Item: 2. Our Climate Future Strategic Funding Plan – Phase I The purpose of this item is to present Phase I of the Our Climate Future (OCF) Strategic Funding Plan, which maps out how the City can strategically allocate climate-related revenue streams – including the 2050 Tax (climate portion), single-use bag fee remittances, and Utilities Electric Rate-Payer Funding– over a 15-year horizon to achieve carbon neutrality by 2050. The full Plan will be completed in Q1 2026 after incorporating Council feedback and will prioritize investments within the 13 OCF Big Moves focused on strategic impact, people-centered solutions, and alignment with Council Priorities. Page 17 City Council Work Session Agenda Item Summary – City of Fort Collins Page 1 of 9 October 28, 2025 WORK SESSION AGENDA ITEM SUMMARY City Council STAFF Jacob Castillo, Chief Sustainability Officer Honore Depew, Sr. Manager, Environmental Sustainability Grant Stump, Lead Specialist, Environmental Sustainability SUBJECT FOR DISCUSSION Our Climate Future Strategic Funding Plan – Phase I EXECUTIVE SUMMARY The purpose of this item is to present Phase I of the Our Climate Future (OCF) Strategic Funding Plan, which maps out how the City can strategically allocate climate-related revenue streams – including the 2050 Tax (climate portion), single-use bag fee remittances, and Utilities Electric Rate-Payer Funding– over a 15-year horizon to achieve carbon neutrality by 2050. The full Plan will be completed in Q1 2026 after incorporating Council feedback and will prioritize investments within the 13 OCF Big Moves focused on strategic impact, people-centered solutions, and alignment with Council Priorities. GENERAL DIRECTION SOUGHT AND SPECIFIC QUESTIONS TO BE ANSWERED 1. What feedback do Councilmembers have on this approach? 2. Are there additional considerations that should be included for allocation prioritization? BACKGROUND / DISCUSSION OCF Framework Climate change threatens our environment, local economy, cost of living, and public health. To address these challenges, Fort Collins City Council adopted Our Climate Future (OCF) in 2021. This framework for action sets ambitious targets and outlines the transformational actions needed to reduce climate pollution and waste, adapt to climate change, and meet people's everyday needs while prioritizing equity and belonging. OCF takes a systems-based approach to coordinate, guide, and report on sustainability efforts based on Council-adopted, data-driven, time-specific targets. OCF Goals Adapted and evolved from three previous plans, OCF established an ultimate goal of becoming a carbon- neutral community by 2050 with the following interim targets for 2030: Page 18 Item 2. City Council Work Session Agenda Item Summary – City of Fort Collins Page 2 of 9 1. Cut greenhouse gas emissions (GHGs) by 80% compared to 2005 levels 2. 100% renewable electricity from both the grid and local sources 3. Reach zero waste, or nothing sent to landfills City Council also adopted an additional interim target of reducing community-wide GHG emissions 50% below baseline by 2026. By 2023, the Fort Collins community had reduced community-wide GHG emissions 27% compared to 2005 baseline levels. Per capita emissions were down 44% over the same time period. Big Moves, Next Moves & Pathways The solutions needed to achieve our goals are organized into the following:  Big Moves (the transformational outcomes desired by the community);  Next Moves (the specific actions to help reach each Big Move; and  Pathways (groups of Next Moves with results that drive toward a specific outcome). 2050 Tax – Climate Portion In 2023, Fort Collins voters approved a half-cent sales tax to provide dedicated revenue for important community services through the middle of this century, with 25% of the funding to reduce emissions and increase renewable electricity. The revenue generated by this portion of the 2050 Tax is estimated at roughly $5M/year – yielding approximately $120M for investments between 2027 and 2050 to make Our Climate Future a reality. STRATEGIC FUNDING PLAN Strategic Funding Plan Purpose The purpose of the OCF Strategic Funding Plan is to guide strategic investments of 2050 Tax climate revenue and other funding sources to achieve carbon neutrality by 2050 and meet interim climate goals through sequenced, long-term implementation of Our Climate Future. OCF has been a valuable guide for City Leadership in past budget cycles, but much has changed since its adoption. The 2050 Tax provides dedicated climate revenue, creating both an opportunity and a need for a more comprehensive, long-term investment strategy that bridges the gap between planning and implementation. This living document will guide how the City strategically uses its tools – economic incentives, regulations, infrastructure investments, and behavior change programs – to achieve OCF's transformational goals. The Plan forecasts available funds and sequences recommended investments within prioritized focus areas across short-, mid-, and long-term horizons. This supports informed decision-making as Council considers which outcomes to fund immediately, which to stage for future years, and where to reserve funds for critical long-term opportunities, all while maintaining accountability and clear progress reporting to taxpayers. Connections To provide the most useful document for Council, the Strategic Funding Plan will incorporate and align with key City priorities and processes. Budget Process The OCF Strategic Funding Plan will align closely with the City’s current and future budget process in both intent and timing. It is being coordinated closely with the development of the City’s new budget process. Page 19 Item 2. City Council Work Session Agenda Item Summary – City of Fort Collins Page 3 of 9 Council Priority Setting As a living document, the OCF Strategic Funding Plan will be informed by and in turn help to provide background information for Council Priorities and the priority setting process. 2024 Strategic Plan ENV 1: Implement the Our Climate Future Plan to advance the City’s greenhouse gas, energy and waste goals; reduce air pollution; and improve community resilience. Other City Plans The Our Climate Future framework affects nearly every part of City operations. The Strategic Funding Plan will align with and incorporate other City planning efforts to ensure coordination across the organization. Connecting to OCF Council Roadmap The Our Climate Future Council Roadmap is a planning tool that helps City Council decide which actions might be taken in the coming years to support OCF goals. See the 2025 Our Climate Future Council Roadmap attached to this AIS. Project Process The Strategic Funding Plan is being developed in two phases (Phase I and Phase II) to ensure that the plan is aligned with Council direction and can be informed by the incoming Council’s priorities. Phase I- Council Feedback The first phase aims to provide Council with substantive detail on the core components of the plan to make the final product most useful for City Leadership. This draft provides: 1. Projected revenue forecasts for selected revenue streams, 2. Overview of the proposed allocation process and outputs, and 3. Examples of updated Pathways for selected Big Moves. Following the October 28, 2025 Work Session, Councilmember feedback and direction will be incorporated to finalize a full Plan in Phase II at the end of Q1 2026 and inform potential funding requests for the 2027- 2028 budgeting process Phase II- Full Plan Phase II will expand the Plan into a full document by the end of Q1 2026, incorporating Council feedback from Phase I. The full document will include expanded revenue forecasts, strategically prioritized Big Moves with associated allocation recommendations, and a full set of Next Move plans for all 13 Big Moves. Revenue Forecasts Forecasts of different revenue streams that may be utilized to fund OCF work are a central component of the Plan. The forecasts cover a 15-year time horizon, providing a long-range view of available resources. Page 20 Item 2. City Council Work Session Agenda Item Summary – City of Fort Collins Page 4 of 9 Forecasts of Revenue Streams Included in Phase I  2050 Tax Funds, Climate Portion  Disposable Bag Remittance Fees  Utilities Funds for Energy Services Potential Revenue Streams to Include in Phase II  2050 Tax, Transit Portion  Community Capital Improvement Plan (If Passed in Nov.)  Future Income Sources (Grants, Bonding, Etc.) The following graphic is the revenue forecast for Phase I revenue streams. Each revenue stream is described in further detail below the graphic. Please note that the dollar values in the graphic are projections only and are subject to change. 2050 Tax (Climate Portion) The climate portion of the 2050 tax may be used to pursue the following efforts:  Greenhouse gas and air pollution reduction  100% renewable electricity  2050 goal of community-wide carbon neutrality The 2050 Tax forecast incorporates updated revenue from City Finance as of October 9 th. Based on feedback from the Finance team, the revenue is forecasted using a 2.5% annual growth in net taxable sales. Disposable Bag Remittance Fees Page 21 Item 2. City Council Work Session Agenda Item Summary – City of Fort Collins Page 5 of 9 To reduce plastic pollution, City Council approved a plastic bag ban and ten-cent fee for recycled paper single-use bags at large grocers in 2022. In 2025, Council expanded the Ordinance to include large retailers, and this forecast incorporates expected bag purchases per population over time. Six cents of every ten-cent fee are remitted to the City quarterly. This fee may be used to pursue the following efforts:  Waste reduction programs and education  Mitigate plastic pollution  Reduce solid waste and litter Utilities Electric Rate-Payer Funding A portion of Utilities electric ratepayer revenue dollars are used to support energy efficiency, local renewable energy generation, and grid flexibility. These funds can be used for electricity and related services furnished to customers connected to the City’s electric system per Sec. 26-462 of the Municipal Code. The Utility may use these funds to assist customers consistent with Council-adopted policies and approved program objectives, which may include financial or technical assistance, incentives or rebates. Allocations and Prioritization Process Funds will be recommended for allocation based on insights from a two-stage process designed to align investments with the City's environmental goals, community values, and Council priorities. Stage 1 (Prioritize) uses three core principles to determine which Big Moves and Pathways to prioritize. Stage 2 (Allocate) suggests funding amounts to those priorities and sequences investments over time for City leadership to review as part of the biennial budget process for consideration and adoption by Council. These stages are summarized below. Stage 1 - Prioritize: Strategic Approach Prioritized efforts should maximize our ability to achieve OCF goals. This means investing in actions that contribute most to long-term climate, zero waste, and energy objectives while reserving funds for major strategic opportunities. Decisions will consider the four tools available to local government:  economic incentives;  behavior change programs;  infrastructure investments; and  regulations. People-Centered OCF is a people-centered framework informed by community input. It focuses on reducing environmental harm, adapting to climate change, and advancing equity so that identity is not a predictor of success. Prioritization will ensure local funds support local solutions for residents and businesses, in accordance with OCF’s Guiding Principles. Interconnected The Plan will align with other City and community planning efforts, connecting climate funding to broader priorities and Council direction. It will also recognize when community partners are best positioned to lead certain Big Moves. Page 22 Item 2. City Council Work Session Agenda Item Summary – City of Fort Collins Page 6 of 9 Stage 2 – Allocate: After prioritizing Big Moves and Pathways, staff will recommend funding allocations based on allowable uses (see table below) and revenue projections. Total allocations will match projected revenue. These staff recommendations will follow the City's budget process. Allocations will also consider:  Time horizons: Funds will be spread across 15 years, sequencing short-, medium-, and long-term efforts  Impacts: Allocations will consider the mitigation, resilience, and equity (MRE) impacts of potential strategies  Categories: Funds will be organized by type, such as staffing, programs, and capital investments Examples Below are two examples of what can be provided through this process. [Note that the numbers in each scenario should be viewed as illustrative only. Final recommended allocations and amounts will be provided in Phase II.] Example 1: Prioritizing Organics Diversion The following example shows how funding could strategically be allocated towards the Organics Diversion Pathway under Big Move 2: Zero Waste Neighborhoods. This example demonstrates how the Strategic Funding Plan and OCF Framework can support sequencing of complementary actions across the spectrum of tools available to local government. Page 23 Item 2. City Council Work Session Agenda Item Summary – City of Fort Collins Page 7 of 9 The simplified table above shows specific actions (grouped by “lever” over time) that may be used to achieve higher organics diversion rates. Short-term strategies include a focus on community education and outreach for behavior change to reduce food waste at the source. Another short-term strategy includes a pilot project currently underway, partnering with a local woman-owned composting business to increase participation in residential and commercial food scrap collection service to better understand benefits and barriers for future program design. Medium term strategies include regional collaboration, and partnership with other agencies like Larimer County to strategically deploy significant resources for capital construction of a composting facility, large enough to handle a significant portion of the food scraps generated in Fort Collins and contributing to a local and regional circular economy. In the long-term, resources and efforts would be invested in behavior change education and outreach for participation in community-wide food scrap collection programs. Assuming a large infrastructure investment has been made in a composting facility, policies and partnerships could be implemented to ensure a closed loop for the local use of finished compost generated by a future facility. When paired with funding needs and allocations, a funding outlay can be provided showing how local taxpayer dollars are being strategically invested over time, as can be seen in the graph below. Example 2: Prioritizing Big Move 6: Efficient, Emissions Free Buildings Page 24 Item 2. City Council Work Session Agenda Item Summary – City of Fort Collins Page 8 of 9 Allocations can also be used to communicate key requirements to make progress in a certain area. Many of the activities within Big Move 6 relate to customer facing incentives, which require predictable, steady investment to be successful. Rather than implement a significant capital investment, allocations in this Big Move focus on steadily funding incentives and training programs to encourage higher adoption. This allocation also demonstrates the anticipated gradual decrease of efficiency-based incentives and increase of technical advisory services and electrification incentives in the long term. Allocating in this manner across multiple Big Moves allows staff to communicate areas of opportunity and associated requirements to make the biggest impact on the transformational outcomes and goals of OCF. Next Moves Update Every two years, city staff and community members work together to review and refine which actions can be achieved in the near term and builds out a 2-year Next Moves Plan. This lets staff adjust strategies over time to fit the community’s needs and Council Priorities while responding to market and technology developments. For Phase I of the Strategic Funding plan, three specific Big Moves and their associated Pathways and Next Moves were updated to provide Council with examples of how tactical level work connects with the Strategic Funding Plan. Examples of these updates are included in the attachment titled “Next Move Update Examples“. Phase II will include a full update of all 13 Big Moves, and their associated Pathways and Next moves. NEXT STEPS The full Plan will be completed in Q1 2026 after incorporating Council feedback and will prioritize investments across 13 Big Moves focused on strategic impact, people-centered solutions, and alignment with Council Priorities. The Strategic Funding Plan is designed to be a tool for aligning strategy and resources to most effectively achieve the transformational outcomes and goals of OCF. It highlights prioritized strategies and funding levers, giving Council the visibility it needs to guide investments and set priorities. Page 25 Item 2. City Council Work Session Agenda Item Summary – City of Fort Collins Page 9 of 9 ATTACHMENTS 1. 2025 Our Climate Future Council Roadmap 2. Next Move Update Examples 3. Strategic Funding Plan Presentation Page 26 Item 2. 2025 Our Climate Future Council Roadmap The OCF Council Roadmap (below) is a strategic, visual tool for Council to use when considering decisions across multiple areas over time and how they impact community climate goals and progress toward Our Climate Future Big Moves. The Roadmap presents initiatives that offer Pathways toward achieving adopted goals and shows what tools are available to make progress. It includes decision points in areas of policy, project, and program development where Council will be involved through Work Sessions and formal adoption processes. However, it does not include all work that advances OCF Big Moves, and community-led initiatives are not included. What the Roadmap does:  Shows what actions are available to help reach community climate and waste goals  Demonstrates how these actions connect to OCF Big Moves (through Pathways)  Focuses on actions that reduce climate pollution, air pollution, and waste in five key areas: mobility, buildings, land use, waste, and funding An asterisk (*) indicates a change from the 2024 Roadmap. Legend: Mobility Related Big Moves Buildings Related Big Moves Land Use Related Big Moves Waste Related Big Moves Funding/Revenue Other Connection to OCF Page 27 Item 2. 2025 OCF Council Road Map Page 28 Item 2. Next Move Update Examples Big Move 2: Zero Waste Neighborhoods Fort Collins produces nearly 100,000 tons of trash each year, or about 3 pounds per person per day. Big Move 2: Zero Waste Neighborhoods aims to reduce this waste by ensuring community-wide access to recycling, composting, and reuse. Big Move 2: Zero Waste Neighborhoods We can all share and reuse so we don’t have to buy things we won’t regularly use and are able to recycle or compost the rest. Pathways Organics Diversion Recycling Landfill Diversion Reduce GHG emissions such as methane by diverting organic matter from landfills to repurposed products like healthy soil from composting Prevent waste from entering landfills by converting it into reusable material Reduce volume of waste entering landfills Next Move Examples  Improve and expand on education and outreach promoting organic waste prevention, recovery and diversion.  Pilot and evaluate residential models for food waste.  Community scale infrastructure to collect, process and distribute organic waste for beneficial uses.  Continue to provide and expand recycling education campaign  Expand acceptable materials for Hard-to- Recycle (TRC)  Education and Outreach to reduce single-use plastics  Operations for Contracted Trash and Recycling Program  Host Annual Hazardous Waste Collection Event Page 29 Item 2. Big Move 6: Efficient, Emissions Free Buildings Buildings generate more than two-thirds of our community’s carbon emissions through heating, cooling, lighting, and other daily needs. Improving building performance not only cuts emissions but also creates jobs, enhances indoor air quality, and helps families save money on utility bills. Big Move 6: Efficient, Emissions Free Buildings Everyone lives and works in healthy, energy and water efficient buildings which transition to become emissions free. Pathways Building Performance Building Electrification Building Construction Reduce GHG emissions from existing buildings Shift building energy consumption from natural gas to electricity, reducing GHG emissions as electricity generation becomes more renewable over time Reduce GHG emissions from new buildings upfront, avoiding the need for future efforts to reduce their emissions Next Move Examples  Establish Building Performance Standards  Provide energy efficiency improvement programs for homes and businesses  Provide natural gas electrification programs for homes and businesses  Support and expand local service providers through workforce education on electrification  Establish an energy performance path to zero carbon for new construction by 2030  Provide stock plans for energy efficient, affordable housing developments’ Page 30 Item 2. Big Move 12:100% Renewable Electricity Electricity accounts for over 40% of our community’s carbon emissions while powering our homes, businesses, and economy. To meet future needs, the electric grid must evolve into a more interconnected system of buildings, renewable energy, electric vehicles, and storage while ensuring reliability, affordability, and access for all. Big Move 12: 100% Renewable Electricity Everyone in the community receives affordable and reliable 100% renewable electricity, including from local sources. Pathways Local Renewable Electricity Electric Grid Flexibility Electric Grid Operations Increase renewable electricity generation within the community, by both the City itself and the Community Align electricity generation, storage, and consumption Maintain a reliable, secure, and affordable, interconnected electric grid, while shifting generation to renewable sources Next Move Examples  Provide distributed renewable energy generation programs  Install renewable energy  Provide demand response and grid flexibility programs  Deploy a distributed energy resource management system’  Partner with Platte River on their transition into the Southwest Power Pool RTO, and retirement of all owned coal generation  Partner with Platte River on their installation of utility-scale renewable energy generation Page 31 Item 2. Headline Copy Goes Here 10-28-2025 Work Session Our Climate Future- Strategic Funding Plan: Phase I Jacob Castillo, Honore Depew, Grant Stump Page 32 Item 2. Headline Copy Goes HereAgenda 2 •Questions for Council to Consider •Our Climate Future Background •Strategic Funding Plan •Purpose •Revenue Projections •Allocations •Next Moves •Next Steps Page 33 Item 2. Headline Copy Goes HereGuidance Sought 3 •What feedback do Councilmembers have on this approach? •Are there additional considerations that should be included for allocation prioritization? Page 34 Item 2. Headline Copy Goes Here Our Climate Future Background 4 Page 35 Item 2. Headline Copy Goes Here SupportStructurePurpose Our Climate Future Background 5 •Guide Fort Collins toward a sustainable, carbon-neutral future while focusing on the needs of its people •Community driven plan focused on Mitigation, Resilience and Equity •Organization-wide effort •Cross-departmental leadership •2050 Tax –Climate •Voter-approved: 2023 •First investments:2024 •Council-adopted 2030 Goals •Reduce greenhouse gas emissions by 80% below 2005 baseline •100% renewable electricity •Achieve zero waste •13 Big Moves •Community Voice •Transformational Outcomes Page 36 Item 2. Headline Copy Goes HereTerminology 6 Big Moves •Transformational Outcomes Pathways •Strategic Level Next Moves •Tactical Level Page 37 Item 2. Headline Copy Goes Here Strategic Funding Plan Purpose 7 Page 38 Item 2. Headline Copy Goes HerePurpose and Deliverables 8 Purpose: Create a strategic guidance document for Our Climate Future related investments with a focus on the most effective use of funds to achieve the goals and outcomes of OCF. Key Deliverables: •Revenue Projections •Allocations •Next Moves Plan Timeframe: Q2 2025–Q1 2026 Page 39 Item 2. Headline Copy Goes Here Living DocumentPhase II-Full PlanPhase I-Council Consult Project Plan 9 Primary Deliverables •Process for Review •Draft Projections & Allocation Criteria Considerations •Updated Biennially to Inform: •Budget Decisions •Council Priorities •Strategic Planning Primary Deliverables •Revenue Projections •Allocation Criteria and Approach •Next Moves Plan Update End of Q1 2026 Page 40 Item 2. Headline Copy Goes HereBudget and Strategic Plan Timing Budgeting Strategic Funding Plan Council Election Council Onboarding and Priority Adoption Strategic Funding Plan Page 41 Item 2. Headline Copy Goes Here Revenue Projections Page 42 Item 2. Headline Copy Goes HerePrimary Funding Stream Forecasts 12 Time Horizon-15 Years Phase I-Council Presentation •2050 Tax, Climate Portion •Remittance Fees from Disposable Bags •Utilities Electric Rate-Payer Funding Phase II-Full Plan Potential Additional Sources •2050 Tax, Transit Portion •Community Capital Improvement Plan (If Passed in Nov.) •Future Income Sources (Grants, Bonding, Etc.) Page 43 Item 2. Headline Copy Goes Here 13 Example Annual Funding Forecast * Please note that the numbers in this slide should be considered as placeholders, not final numbers. Page 44 Item 2. Headline Copy Goes Here Allocations Page 45 Item 2. Headline Copy Goes HereAllocation Approach 15 Purpose Strategically align investments with: •Our Climate Future Goals •Big Moves •Council Priorities Process •Stage 1: Prioritization •Stage 2: Allocation Page 46 Item 2. Headline Copy Goes Here InterconnectedPeople CenteredStrategic Approach Stage 1: Prioritization 16 •Maximize likelihood of hitting 2050 goals and outcomes •Identify long term strategic investments and manage fund reserves for those opportunities •Timing and sequencing of investments informed by the 4 levers of local government •Incorporate Council Priorities and Guidance •Connect to other City planning documents and efforts •Identify and support partnerships best positioned to lead •Identify and prioritize strategies that address Mitigation, Resilience, and Equity •Ensure local impact is prioritized and communicated Page 47 Item 2. Headline Copy Goes HereStage 2: Allocation 17 Goal Recommend funding allocations for prioritized Big Moves and Pathways Considerations •Align Allocations to Revenue Forecasts •Allowable Uses •Funding Category •Multiple time horizons •Mitigation, Resilience, and Equity Impacts Page 48 Item 2. Headline Copy Goes HereMitigation, Resilience, and Equity Impacts 18 Mitigation •Greenhouse Gas Reductions •Waste Diverted •Renewable Energy Resilience The capacity to prepare our human and natural systems to respond and adapt to changes and disruptions of various scales that affect our ability to thrive. Equity Designing programs, policies, and systems to ensure identity is not a predictor of outcomes Tradeoffs Identify where an effort to impact one area, may negatively impact another (Ex. GHG Mitigation impacting affordability, etc.) Page 49 Item 2. Headline Copy Goes HereExample: Organics Diversion 19 Big Move 2: Zero Waste Neighborhoods •Organics Diversion Pathway Narrative Reduce GHG emissions such as methane by diverting organic matter from landfills to repurposed products like healthy soil from composting What this example shows •Strategic timing of levers •Capital Funding •Incorporation of multiple funding streams Page 50 Item 2. Headline Copy Goes Here 20 Example-Strategic Timing of Levers Page 51 Item 2. Headline Copy Goes Here 21 Example Funding Outlay * Please note that the numbers in this slide should be considered as examples only, not proposed projects or amounts.Page 52 Item 2. Headline Copy Goes HereHere’s what the following Example will show 22 Big Move 6: Efficient, Emissions Free Buildings Pathways •Building Performance •Building Electrification •Building Construction Narrative To reduce GHG emissions from buildings, consistent investment in incentives and strategic timing of funding is critical. What this example shows •Strategy Across Pathways •Funding Timing Page 53 Item 2. Headline Copy Goes Here 23 Big Move 6 –Annual Target Funding Allocations * Please note that the numbers in this slide should be considered as placeholders, not final numbers. Page 54 Item 2. Headline Copy Goes Here Next Moves Plan Page 55 Item 2. Headline Copy Goes Here Current UpdatesTerminologyPurpose and Connection Next Moves Plan -Background 25 •Communicate actions being taken on each Big Move •Provides work plan for staff •Accountability to the community •Tie actions to budgetary needs •2-Zero Waste Neighborhoods •6-Efficient, Emissions Free Buildings •12-100% Renewable Electricity Big Moves •Transformational Outcomes Pathways •Strategic Level Next Moves •Tactical Level Page 56 Item 2. Headline Copy Goes Here 26 Big Move 6: Efficient, Emissions Free Buildings Everyone lives and works in healthy, energy and water efficient buildings which transition to become emissions free. Next Moves •Establish Building Performance Standards •Provide energy efficiency improvement programs for homes and businesses •Provide behavioral energy efficiency programs for homes and businesses •Provide financial mechanisms to support retrofit programs (e.g., Epic loans, CPACE) Building Performance Pathway * Please note that the Next Moves in this slide are not final or comprehensive and should serve as an example only Page 57 Item 2. Headline Copy Goes Here Next Steps Page 58 Item 2. Headline Copy Goes HereSummary 28 Phase II Primary Deliverables •Revenue Projections •Allocation Criteria and Process •Next Moves Update Due Date •End of Q1 2026 Page 59 Item 2. Headline Copy Goes HereGuidance Sought 29 •What feedback do Councilmembers have on this approach? •Are there additional considerations that should be included for allocation prioritization? Page 60 Item 2. File Attachments for Item: 3. Transfort Optimization Plan The purpose of this item is to present the Transfort Optimization Plan, fiscally constrained, short-range service plan that aligns Fort Collins’ transit network with current financial realities, community needs, and long-term sustainability goals, with a focus towards increasing ridership and better serving transit-reliant populations and high-travel corridors. Developed through extensive public engagement, data analysis, and national best practices, the plan prioritizes frequency, reliability, and equitable access while maintaining a fare-free system. The recommended scenario establishes a streamlined, grid-based network that strengthens high- demand corridors, improves connectivity to key destinations, and operates within available resources. It also updates Dial-A-Ride and Dial-A-Taxi services to maintain flexibility while meeting ADA requirements and introduces a new safety and security partnership with Police Services. Together, these efforts position Transfort to deliver a more efficient, sustainable, and community-focused transit system that remains adaptable to future funding and evolving needs. Page 61 City Council Work Session Agenda Item Summary – City of Fort Collins Page 1 of 3 October 28, 2025 WORK SESSION AGENDA ITEM SUMMARY City Council STAFF Kaley Zeisel, Transfort Director Steven Zupparo, Transfort Sr. Operations Manager SUBJECT FOR DISCUSSION Transfort Optimization Plan EXECUTIVE SUMMARY The purpose of this item is to present the Transfort Optimization Plan, fiscally constrained, short-range service plan that aligns Fort Collins’ transit network with current financial realities, community needs, and long-term sustainability goals, with a focus towards increasing ridership and better serving transit-reliant populations and high-travel corridors. Developed through extensive public engagement, data analysis, and national best practices, the plan prioritizes frequency, reliability, and equitable access while maintaining a fare-free system. The recommended scenario establishes a streamlined, grid-based network that strengthens high-demand corridors, improves connectivity to key destinations, and operates within available resources. It also updates Dial-A-Ride and Dial-A-Taxi services to maintain flexibility while meeting ADA requirements and introduces a new safety and security partnership with Police Services. Together, these efforts position Transfort to deliver a more efficient, sustainable, and community-focused transit system that remains adaptable to future funding and evolving needs. GENERAL DIRECTION SOUGHT AND SPECIFIC QUESTIONS TO BE ANSWERED 1. What questions of feedback to Councilmembers have about the service planning principles and priorities guiding the future transit system? BACKGROUND / DISCUSSION The Optimization Plan serves as a fiscally constrained, short-range service plan that implements elements of the long-term Transit Master Plan. It focuses on maintaining a fare-free, equitable system while growing ridership and aligning service delivery with financial realities, post-pandemic travel patterns, and evolving community needs. The plan’s goals include maintaining a fare-free transit system that supports equity and attracts riders, conducting inclusive engagement to ensure diverse voices shape priorities, aligning with best practices to support ridership recovery, adapting service to reflect post-COVID travel behavior, designing a simpler and more intuitive network, and ensuring financial feasibility within available resources. Across the transit industry, expenses have grown dramatically, between 50 and 70 percent since 2019, and Fort Collins has experienced roughly a 50 percent increase over that same period. Consistent with national trends, Transfort’s largest cost drivers have been personnel, vehicle repair, and contracted services. While revenue has increased modestly, primarily at the City level, it has not kept pace with rising Page 62 Item 3. City Council Work Session Agenda Item Summary – City of Fort Collins Page 2 of 3 expenses. Transfort has also experienced reductions in key revenue sources, including FLEX partnership funding and the FASTER operational grant. In the short-term, Transfort has leveraged the 2050 tax, in line with ballot language, to meet the increased expense needs. Beginning in 2026, Transfort anticipates receiving between $2 and $3 million annually in new state funding through Senate Bill 230, which establishes a dedicated funding stream generated by oil and gas fees to expand and improve public transit statewide. This new funding has been incorporated into financial assumptions for the recommended scenario. Transit continues to be a key City strategy in achieving Council and community goals. The Optimization Plan strengthens alignment with the City’s Strategic Plan by focusing on efficiency, reliability, and equitable access, laying the groundwork for a sustainable and resilient transit system. The recommended scenario was informed by three foundational elements: community and stakeholder feedback, data evaluation, and best practices from peer agencies that have successfully recovered ridership post-pandemic. To understand trade-offs around possible system design, three preliminary scenarios were developed within a fiscally constrained 130,000-hour framework, later refined to 110–115,000 hours to reflect updated budget forecasts.  Scenario 1: Travel Patterns, focused on high-frequency, direct routes on major travel corridors.  Scenario 2: Rider Demand, prioritized service for transit-reliant communities.  Scenario 3: Condensed with Microtransit, combined a high-frequency core network with flexible coverage with on-demand microtransit in low-density areas. Transfort and FC Moves conducted a comprehensive engagement effort, reaching thousands of residents through surveys, open houses, community events, and presentations to Boards and Commissions, the Community Advisory Committee and other key stakeholders and partners. Key partners included Colorado State University, Poudre School District, and community organizations serving older adults, the business community, people with disabilities, and underserved populations. Feedback emphasized frequency over coverage as the top priority, support for simple, linear routes, improved reliability and safety, and expanded evening, weekend, and school-oriented service. Residents also identified system gaps, particularly along Timberline and south of Harmony, and expressed skepticism about microtransit due to cost and the inconvenience of transferring depending on the model used. Overall, public engagement indicated strongest support for Scenario 1, Travel Patterns, with elements of Scenario 2, Rider Demand, reflected in the final hybrid recommendation. Each scenario was evaluated using multiple data inputs, including ridership by route and stop, route productivity, demographics, and travel demand. Peer analysis of six high-performing transit agencies revealed key trends: smaller service areas and simplified networks improved efficiency, operating costs increased industry-wide even with service reductions, and agencies that focused on frequency, reliability, and transit reliant riders achieved the strongest recovery. These findings reinforced the need for a leaner, data-driven, grid-based system prioritizing high-performing routes, equity, and key core travel corridors over infrequent coverage routes. Transfort’s redesign is guided by five core principles: frequency, productivity, equity, simplicity, and efficiency. These principles informed network design priorities emphasizing a grid-style structure that focuses on the highest-traveled corridors, improves service for many transit-reliant populations, enhances access to key destinations such as schools, healthcare, and affordable housing, and maximizes ridership return per dollar invested. The plan reflects the best knowledge and data available today within a constrained budget. and Transfort remains committed to ongoing evaluation and adaptation as conditions evolve. The recommended transit network strengthens core routes, reduces detours, and aligns resources with the highest-demand areas. The plan introduces a layered network with frequent routes operating every 10–20 minutes, core routes at 30-minute service levels during peak periods, and local routes serving Page 63 Item 3. City Council Work Session Agenda Item Summary – City of Fort Collins Page 3 of 3 corridors with steady but moderate demand. Tradeoffs between frequency and coverage were carefully balanced to prioritize equity and long-term sustainability with available resources. Under federal ADA requirements, Dial-A-Ride service must extend three-quarters of a mile from any fixed route. As the fixed-route system becomes more condensed, the Dial-A-Ride boundary will also contract. Approximately 39 existing clients will fall outside the new area but will be 'legacy'd’ in to ensure continuity of service. The reduction primarily affects single-family neighborhoods, while most healthcare providers and human-service facilities remain in the service area. Because Dial-A-Ride mirrors fixed-route service hours, Sunday paratransit service will be discontinued. Currently, an average of 19 trips occur on Sundays. Based on projected ridership and cost increases, Sunday service in the new service area is estimated to cost approximately $80,000 annually to continue. However, the Dial-A-Taxi program will be expanded to bridge service gaps, allowing Dial-A-Ride eligible riders within the Growth Management Area to take taxi trips any day of the week or time of the day using a $15 voucher toward the taxi fare. Based on the available budget, Transfort estimates that 30 vouchers will be available per day, seven (7) days per week. If funding for this program increases, the number of vouchers per day will also increase. These program adjustments maintain flexibility for riders while aligning operations with fiscal and regulatory requirements. Transfort is also advancing work to enhance safety and security across the system. Community survey results indicate improved perceptions of safety, though continued progress is needed. Due to challenges filling Transit Service Officer positions (68 applicants and only one hire since fall of 2024) Transfort is pursuing a hybrid model in partnership with Police Services through the Homeless Outreach and Proactive Engagement (HOPE) Team and the Mental Health Response Team (MHRT). Using the SARA Model (Scanning, Analysis, Response, Assessment), this partnership will identify key safety concerns, address root causes through environmental and operational changes, implement targeted responses such as signage, cameras, and de-escalation training, and assess progress through data and feedback. This approach brings specialized expertise, ensures consistent presence, and provides proactive support for both riders and operators. NEXT STEPS Currently, the project is in the stage of confirming principles and priorities with C ouncil. Following Council feedback, Transfort and FC Moves will share outcomes with the community, finalize implementation plans, and begin phased rollout of the operational plan in 2027. ATTACHMENTS 1. Proposed System Map 2. Paratransit Polygon 3. Outreach Overview 4. Presentation Page 64 Item 3. Attachment 1: Proposed System Map Page 65 Item 3. Frequencies Page 66 Item 3. Future Service Options & Cost Page 67 Item 3. Attachment 2: Proposed Paratransit (Dial-A-Ride) Service Area Polygon Page 68 Item 3. Attachment 3: Summary of Public Involvement About Central to the planning process for the Transfort Optimization Plan is a robust and inclusive public involvement process designed to ensure meaningful participation from diverse populations, with a particular emphasis on transit-reliant groups. Who we interacted with Project-related committees, boards and commissions, organization and community groups, and the community-at-large were engaged at key points throughout the project. A Community Advisory Committee (CAC) and a Technical Advisory Committee (TAC) were formed to meet at key points throughout the project to provide guidance on analyses and materials. The CAC is comprised of representatives from different organizational and community groups, whereas the TAC is comprised of City of Fort Collins staff with planning and technical expertise from FC Moves and Transfort. Additionally, the project team engaged with a variety of Boards and Commissions during the project including Transportation Board, Senior Advisory Board, Disability Advisory Board, Climate Equity Committee, and Dial-A-Ride & Transit Accessibility Committee (DARTAC). The heart of public engagement occurred in Summer 2025 to obtain input on the three transit scenarios, reaching thousands of residents through surveys, open houses, community events, and presentations to Boards and Commissions, the CAC and TAC, and other key stakeholders and partners. Key partners included schools, higher education, community organizations serving older adults, the business community, people with disabilities, and underserved populations. Because two key stakeholders, Colorado State University and Poudre School District were not in session during June, staff conducted outreach to both entities in the spring in the form of surveys, tabling at events, and social media. Additionally, links to surveys via QR code were provided on buses to capture existing transit riders. This phase of engagement was both targeted and broad-based, capturing as many people as possible in the process including both current and potential transit riders. Our strongest interactions occurred with stakeholder groups who tended to be informed and interested in transit but didn’t necessarily use transit regularly. We also had strong responses from the community through the survey with over 350 responses. What we heard on the scenarios Feedback emphasized frequency over coverage as the top priority, support for simple, linear routes, improved reliability and safety, and expanded evening, weekend, and school-oriented service. Residents also identified system gaps, particularly along Timberline and south of Harmony, and expressed skepticism about microtransit due to cost and the inconvenience of transferring to fixed route. Feedback on the scenarios along with data evaluation and best practices informed the recommended transit scenario. Next Steps Following Council feedback, Transfort and FC Moves will enter the inform stage of engagement to share outcomes with the community, finalize implementation plans, and begin phased rollout of the operational plan in 2027. Page 69 Item 3. Additional Information This section provides more specific information on the community groups and organizations engaged during the project. The CAC is comprised of members from the following organizations or groups:  Active Modes Advisory Board  ARC of Larimer County  Bohemian Foundation  CARE Communities  Colorado State University (CSU)  DARTAC  Front Range Community College  Housing Catalyst  Large Employers (e.g. Advanced Energy, Broadcom)  North Front Range Metropolitan Planning Organization (NFRMPO)  Poudre School District (PSD)  Rescue Mission  Strong Towns  Summit Stone Health  Transportation Board The following groups (in alphabetical order), identified in the Public Involvement Plan (PIP) are populations that we engaged:  Boards and Commissions  Business representatives  Colorado State University  Community members with disabilities  Culturally diverse community members  Fort Collins transit riders  Latino/Hispanic and Spanish- speaking community members  Lower-income and underserved community members  Older adults (Ages 60+)  Residents in Fort Collins  Transit-dependent populations  Transit, active modes and sustainability advocates  Unhoused community members  Youth/schools Engagement occurred in some capacity with the following organizations:  Active Modes Advisory Board  Chamber of Commerce – Local Legislative Affairs Committee  City Council  Climate Equity Committee  Colorado State University Page 70 Item 3.  Community Connectors  Dial-a-Ride and Transit Accessibility Committee  Disability Advisory Board  Housing Catalyst  Larimer County Mobility Committee  Larimer County Office on Aging  Lived Experience Advisory Council  Midtown Business Improvement District  North Fort Collins Business Association  Poudre School District  Senior Advisory Board  Transportation Board Page 71 Item 3. Page 72 Item 3. Headline Copy Goes Here Kaley Zeisel, Transfort Director Steven Zupparo, Sr. Operations Manager Jason Miller, Consultant, Fehr & Peers Transfort Optimization Plan Oct. 28, 2025 Page 73 Item 3. Headline Copy Goes HereAgenda 2 1.Project Overview 2.Transit Scenario Development 3.Recommended Transit Scenario 4.Paratransit 5.Safety and Security 6.Next Steps Page 74 Item 3. Headline Copy Goes Here 3 Questions for Council What questions or feedback do Councilmembers have about the service planning principles and priorities guiding the future transit system? Page 75 Item 3. Headline Copy Goes Here Project Overview 4 Page 76 Item 3. Headline Copy Goes Here 5 Purpose + Goals Purpose: A 5–10-year transit service plan grounded in financial constraints, focused on community needs and growing ridership. Best Practices Alignment Keeping transit free ensures equity and attracts riders. Fare-Free Access Inclusive Engagement Financial FeasibilityIntuitive DesignAdaptation to Travel Patterns Purpose: A short-term transit service plan grounded in financial constraints, focused on community needs and growing ridership. Clear, simple navigation encourages use. Plans must be viable to implement within budget. Adjust service to new post-COVID travel habits. Engage diverse voices to shape the priorities. Following industry standards supports ridership recovery. Page 77 Item 3. Headline Copy Goes Here 6 Financial Overview Expenses •Transit industry expenses have grown 50-70% since 2019 •Fort Collins projects a ~50% increase (2019–2026) •Major cost drivers: personnel, vehicle repair, and contracted transportation services Revenue •Revenue growth has occurred primarily at the City level (General Fund and 2050 Tax) •Key external losses: FLEX, FASTER •Expense growth continues to outpace revenue increases •Anticipated new State funding source in 2026 (SB24- 230) *2025 revenue vs expense gap anticipated to be filled with use of 2050 Tax Transit Page 78 Item 3. Headline Copy Goes Here 7 City Priority Council Priority Reduce climate and air pollution through electrification and best practices. Strategic Plan Increase Transfort access and ridership by ensuring the City’s transit services provide safe, reliable and convenient alternatives to driving. Our Climate Future Make investments in equitable access to, and expansion of, all sustainable modes of travel with emphasis on growing transit ridership. Transit Master Plan Provide safe, attractive, efficient, equitable, modern and innovative mobility for people to live, work and play in the City. Transit is a City priority and key strategy in achieving City goals. The Optimization Plan implements Transportation Master Plan (TMP) recommendations. Page 79 Item 3. Headline Copy Goes Here Transit Scenario Development Process 8 Page 80 Item 3. Headline Copy Goes Here 9 Path to the Recommended Transit Scenario Evaluation Evaluate scenarios against a diverse set of data inputs Transit Scenario Formulate a preferred transit scenario Operational Viability Test and modify Best Practices Grounded in a body of industry best practices for ridership improvement Principles and Network Design Priorities Establish and check against our foundational elements Feedback Consider from public, staff and stakeholders Page 81 Item 3. Headline Copy Goes Here 10 Three Scenarios for Public Feedback Scenario 1: Travel Patterns Scenario 2: Rider Demand Scenario 3: Condensed with Microtransit Each scenario was accompanied with their anticipated impacts: Equity benefits,cost effectiveness,ridership improvement,economic health benefits,environmental benefits,alignment with City priorities. Page 82 Item 3. Headline Copy Goes Here 11 Feedback on the Three Scenarios •Frequency First: Frequency (over coverage) is the top priority! •Rider-Centered Service: Support for transit-reliant riders and simple, linear routes on major corridors for clarity and ease of travel.. •Safety and Quality: Focus on improving on-time performance, reliability, safety, and overall service experience. •System Gaps and Travel Time: Concerns about long routes, low-frequency service, and gaps in areas (Timberline, Trilby). •Microtransit: Some interest but skepticism due to cost, with most people not liking the idea of transferring from microtransit to fixed route. •Partnerships: Enhance and establish new partnerships to expand service opportunities. •Expanded Access: Requests for evening, weekend (esp. Sunday), and school - oriented service, including PSD high schools, CSU, Front Range Community College (FRCC) and parks and recreation areas. The community-at-large, Boards and Commissions, TAC/CAC and targeted groups weighed in on the three options via an online survey, focus groups, presentations, open house, and other community events. Who and How What We Heard Page 83 Item 3. Headline Copy Goes Here 12 System Evaluation Areas of High Transit Propensity Average Annual Daily Traffic Affordable Housing LocationsExisting Routes with Highest Ridership The three scenarios were evaluated against a diverse set of data inputs including: Route productivity,ridership by route and stop,rider demographics,transit propensity,travel patterns,annual average daily traffic,affordable housing,proximity to key destinations. Page 84 Item 3. Headline Copy Goes Here 13 Best Practices Characteristics Transfort Fort Collins, CO METRO Akron, OH CityBus Lafayette, IN Unitrans Davis, CA FAST Fayetville, NC GP Metro Portland, ME WRTA Worcester, MA Summary Ridership Recovery 46%99%93%93%103%89%156% Each peer agency’s ridership recovery is well above the national average. Service Area / Number of Routes N/A -7%-8%-14%-1%-9%-14% On average, most peer agencies have reduced their service area by ~ 6%. Total Operating Funds +16%+8%+27%+45%+19%+28%+24%Operating funds have increased across all peer agencies Operating Expenses per Passenger +76%+37%+46%+84%-20%+57%-4% Operating expenses per passenger have increased across most agencies, except for two peer agencies. Main Recovery Drivers N/A Network redesign, higher frequency Higher college enrollments and limited parking spaces Student focus and limited parking spaces Free fare and flex stop for a new route Half fare, route adjustments, higher frequency Free fare, extended service hours, partnership We examined the main recovery drivers of six peer agencies with successful ridership recovery rates well above the national average between 2019 and 2023. Themes: Smaller service areas/less routes, increased operating expenses and fundsPage 85 Item 3. Headline Copy Goes Here 14 Principles and Design Priorities Principles •Frequency •Productivity •Equity •Simplicity •Efficiency Network Design Priorities •Grid pattern •Data-driven •Transit-reliant populations •Productivity •Highest-travelled corridors •Popular destinations •Community-requested service •Highest ridership return Feedback Evaluation Best Practices Principles and Design Priorities Page 86 Item 3. Headline Copy Goes Here Recommended Transit Scenario 15 Page 87 Item 3. Headline Copy Goes Here 16 The Recommended Transit Scenario Toward growing ridership •A lean, linear, grid-like route system that limits detours •Maintains or improves highest performing routes •Ridership projected to increase to 3.35M (2.62M in 2024) Focuses on community needs •Informed by community outreach (e.g. new service on Timberline) •Serves areas of the city with the highest transit reliance •Connects key destinations like schools, healthcare facilities, shopping centers, human services, and affordable housing Grounded in financial constraints •Retools low performing routes •Tested against existing resources •Operationally viable Page 88 Item 3. Headline Copy Goes Here 17 Layered Network Approach Frequent Core Local Contracted routes FLEX, HORN, GOLD and FHS are included in the system Weekday 10-20 mins all day Weekend 15-20 mins all day Peak frequency of 30 mins for 8 hrs/day* Off-peak frequency of 60 mins for 6 hrs/day Frequency of 60 mins for 14 hrs/day Monday-Saturday service, no Sundays *The 7 runs at 30 min frequencies for 14 hrs/day Monday-Saturday Page 89 Item 3. Headline Copy Goes Here 18 Long-term Service Expansion Options Service Expansion Options •W. Elizabeth connection to MAX •Higher frequency on MAX •Extending Timberline route to service Trilby (18N) •New route to service west Harmony (Route 11N) •Sunday service for fixed route and paratransit •Return of service along Laporte Ave (Route 9) •Micro-transit zone Page 90 Item 3. Headline Copy Goes Here Paratransit 19 Page 91 Item 3. Headline Copy Goes HereDial-A-Ride Service Area –Impacts and Mitigation 20 Impacts •Dial-A-Ride service area will decrease with new fixed route map •No Sunday service •FTA requires complementary paratransit service within ¾ mile of fixed route service •Dial-A-Ride program costs are difficult to predict or control Mitigation Actions •Legacy-in existing clients who will be outside the new service area •Update Dial-A-Taxi Voucher Program •Expanded service area to Growth Management Area •Service any time of day, any day of week Page 92 Item 3. Headline Copy Goes Here 21 Dial-A-Ride Service Area Service Reduction New Service Area Service ExpansionPage 93 Item 3. Headline Copy Goes Here Safety and Security 22 Page 94 Item 3. Headline Copy Goes Here 23 Police & Transfort Partnership SARA Model Framework Analysis ResponseAssessment Scanning •Homeless Outreach & Proactive Engagement Team (HOPE) •Mental Health Response Team (MHRT) Program Timeline: Oct. 2025-Dec. 2028 2025 = $40k 2026 =$260k 2027 and 2028 =$250k annually Transfort plans to use 2050 tax approved in BFO offer 65.22 to fund partnership. Page 95 Item 3. Headline Copy Goes Here Next Steps 24 Page 96 Item 3. Headline Copy Goes Here 25 Next Steps Public outreach and engagement Evaluate and analyze feedback to develop principles and priorities Develop final scenario based on principles and priorities Ensure that final scenario is operationally viable and fiscally sustainable Confirm principles & priorities with Council Inform stage of public engagement Implement operational plan (2027) Page 97 Item 3. Headline Copy Goes Here 26 Questions for Council What questions or feedback do Councilmembers have about the service planning principles and priorities guiding the future transit system? Principles •Frequency •Productivity •Equity •Simplicity •Efficiency Network Design Priorities •Grid pattern •Data-driven •Transit-reliant populations •Productivity •Highest-travelled corridors •Popular Destinations •Community-requested service •Highest ridership return Page 98 Item 3. Headline Copy Goes Here Thank you! 27 Page 99 Item 3. File Attachments for Item: 4. Building Performance Standards The purpose of this item is to discuss the proposed Building Performance Standards (BPS) policy including updates since the last work session. Staff seek Councilmember feedback on policy before a possible first reading. Staff recommend a regulatory strategy for reducing building energy use and emissions. Input from affected groups shaped the policy recommendations outlined in this work session and associated materials. BPS policy work aligns with the 2024-2026 adopted Council priorities and the Our Climate Future (OCF) plan; specifically, the goal of an 80% greenhouse gas emission reduction by 2030 and Big Move 6: Efficient, Emissions Free Buildings. Page 100 City Council Work Session Agenda Item Summary – City of Fort Collins Page 1 of 8 October 28, 2025 WORK SESSION AGENDA ITEM SUMMARY City Council STAFF Brian Tholl, Energy Services Director SUBJECT FOR DISCUSSION Building Performance Standards EXECUTIVE SUMMARY The purpose of this item is to discuss the proposed Building Performance Standards (BPS) policy including updates since the last work session. Staff seek Councilmember feedback on policy before a possible first reading. Staff recommend a regulatory strategy for reducing building energy use and emissions. Input from affected groups shaped the policy recommendations outlined in this work session and associated materials. BPS policy work aligns with the 2024-2026 adopted Council priorities and the Our Climate Future (OCF) plan; specifically, the goal of an 80% greenhouse gas emission reduction by 2030 and Big Move 6: Efficient, Emissions Free Buildings. GENERAL DIRECTION SOUGHT AND SPECIFIC QUESTIONS TO BE ANSWERED 1. Do Councilmembers have feedback on the Building Performance Standards (BPS) policy levers identified? 2. Do Councilmembers support advancing a BPS regulatory framework for adoption? BACKGROUND / DISCUSSION Buildings in Fort Collins account for more than two-thirds of our local greenhouse gas (GHG) emissions, which are a leading cause of respiratory morbidity and contribute to the severe non -attainment status for county-wide pollutants. Reducing emissions through energy efficiency impacts local health. It is also tied to the local economy. Becoming more energy efficient is the most cost-effective way to lower energy use, which impacts rate pressure for all Utilities customers, not just those in covered buildings. BPS represent an investment in our local building stock and infrastructure. They also have the potential to save local utility customers hundreds of millions of dollars over the next few decades, while improving health, safety, and comfort in local buildings. Over the course of 2025, staff partnered with local building owners to complete a Customer Journey Map and a Technical Support Pilot. Page 101 Item 4. City Council Work Session Agenda Item Summary – City of Fort Collins Page 2 of 8 Customer Journey Map Activity and Findings In partnership with BlastX Consulting, staff created a customer journey map to facilitate a shared understanding of the BPS journey for a variety of audiences. The map was designed to isolate potential pain points and align them with existing or recommended mitigation strategies. The map incorporates a comprehensive review of existing documentation, internal knowledge, and feedback from building owner representatives. The process also isolated opportunities to capture feedback throughout the journey and assigned likely building owner sentiment to steps in the journey map, as reflected by the color and placement of actions on the map below. Actions that are depicted in green reflect positive customer sentiment, while blue represents neutrality and red represents negative customer sentiment. BlastX interviewed building owner representatives to validate and identify any new journey steps or pain points they might encounter, ultimately aiming to inform the City's support strategies and resource development. Through analysis of interview data, BlastX uncovered a series of key themes and opportunities, including:  The importance of clear, accessible language and responsive communication  Transparent and accessible information on financial resources  A streamlined and user-friendly web-based tool for compliance and resources  Resources and information about “off-ramps”  Clearly stated outcomes and goals of the policy For a review of the journey map’s specific steps along with projected pain points and mitigation strategies, see Attachment 1: BPS Customer Journey Map. Technical Support Pilot The technical support pilot provided robust on-site assessments of the following building types:  Municipal  Multi-family  Office (two buildings)  Mixed-use historic  Restaurant Two of the buildings included in the pilot are over 100 years old. All buildings chosen needed to meet the maximum reduction cap for their size, to demonstrate options to meet the policy’s maximum requirements. Therefore, buildings were not selected to be representative examples of ‘average’ commercial buildings Page 102 Item 4. City Council Work Session Agenda Item Summary – City of Fort Collins Page 3 of 8 covered by the proposed policy, but rather to provide real world scenarios for compliance in a subset of local buildings. Overall Pilot Findings The following high-level findings were observed during the pilot. Cost of Compliance:  Average cost of compliance on a per square foot basis was on par with BPS policy estimates (average $4.64/square foot).  Cost of upgrades varied across buildings (between $0.15/square foot to $13.20/square foot). o Some buildings with the highest cost had equipment at or near the end of their useful life, which blurs the line of how much of upgrade costs were due to the BPS policy itself as opposed to operational or maintenance expenses for the building owner.  Cost estimates were provided by a third-party engineering partner. At this time, pilot timeline or participant purchasing constraints have not allowed local contractor bids to be collected for all projects. Initial feedback from the municipal building indicates vendor cost estimates and energy use intensity (EUI) impact estimates are accurate. Technical Feasibility:  Recommended upgrade measures varied across all buildings, including various operational and equipment-based upgrades such as installing programmable thermostats and upgrading refrigerators.  Maximum reduction caps for individual buildings (which limit the maximum required reduction in inefficient buildings) were determined to be technically achievable in all six building scenarios.  No buildings require fuel switching to come into compliance, although options for compliance can include system electrification. Engagement:  Building owner awareness, helping them understand requirements, and assessment and planning steps will likely take a minimum of 12 months. o Technical support and program staff continue to support emphasizing sufficient time for building owners to fully comply with BPS requirements.  Awareness of specific proposed BPS policy requirements is still low among building owner representatives engaged during the pilot enrollment process. The following table provides a high-level economic summary of the proposed upgrades for local buildings. Page 103 Item 4. City Council Work Session Agenda Item Summary – City of Fort Collins Page 4 of 8 Building Upgrade Summary Property Building Size (square feet) Building EUI: kBTU/ft2 BPS target* for property kBTU/ft2 Estimated Cost for compliance before rebates** Simple payback with local rebates Cost for compliance per square foot Municipal Building 5,500 110 36 $1,560 0.4 yrs $0.28 Mixed Use Museum / Restaurant 17,875 269 103 $236,000 20.6 yrs $13.20 Office (1) 31,669 102 56 $4,500 6.8 yrs $0.15 Office (2) 44,142 110 63 $240,000 19.4 yrs $5.43 Multi-family 104,826 68 43 $490,300 19.1 yrs $4.68 Restaurant 7,066 437 185 $3,100 1.2 yrs $0.43 *All pilot buildings, due to existing EUI, would be required to achieve the maximum required reductions by size of 15% or 25% to achieve compliance. **In some cases, cost to comply includes replacing equipment that is at the end of its useful life. Each building representative was presented with multiple options to reach their target. The pathways included above are those with the shortest simple payback, but those are not always the options with the lowest upfront cost. For example, office building (2) could reach its target with half the upfront investment, but the simple payback would be longer. Four of the buildings were capped at a 25% reduction based on their size, while two smaller buildings were capped at a 15% reduction. The cap recommended in policy prevents buildings from being tasked with reaching targets that may be financially or technically untenable based on their current level of efficiency and distance from target; caps are the maximum reductions that any building covered by the proposed policy would be required to achieve. Per policy recommendations, the lowest EUI from the previous three years of benchmarking was used as a baseline, providing owners with the ability to include any recent efficiency improvements. Cost included does not factor in any available rebates, incentives, or tax deductions, however simple payback is calculated including local Efficiency Works Business rebates, when applicable. Municipal building details: An energy assessment was performed at 3156 Overland Trail, at the City-owned Spring Canyon Park shop. Primary recommendations from the onsite assessment include LED lighting upgrades, lighting controls, installation of programmable thermostats and scheduling, as well as appliance upgrade recommendations. Not all listed measures are required to meet BPS target. This municipal building pursued upgrade opportunities with both internal staff and a contractor. BPS target or timeline adjustments are not needed due to cost and ease of installation. BPS targets can be met at a cost of $1,560, although further upgrades were made, bringing projected energy use reductions to 25% at a cost of $3,360. Staff will monitor and verify energy savings reductions achieved with these upgrades. Historic Building details: An energy assessment was performed at a three-story historic building on College Avenue that consists of several use types, including an office and a restaurant. Possible upgrades identified include LED lighting upgrades, lighting controls, installation of demand-controlled kitchen ventilation, replacement of HVAC Page 104 Item 4. City Council Work Session Agenda Item Summary – City of Fort Collins Page 5 of 8 rooftop units and boilers (equipment at or near the end of their useful life), and building window and insulation upgrades. Not all listed measures are required to meet BPS target. Total costs of equipment upgrades needed to bring the building into compliance was approximately $236,000, including the replacement of end-of-life HVAC rooftop units and boilers. While the building is not a likely candidate for a target adjustment (given replacing end of life equipment is a likely pathway to compliance), it would be a candidate for a timeline adjustment, allowing the building owner to replace old equipment over several years to reduce single-year expenses. In this case, the boiler replacement may occur after the rooftop units given current equipment condition; a standard timeline adjustment would consider aligning targets with necessary replacement that might happen a few years beyond standard policy targets. Likely pathways to compliance do not conflict with historic preservation requirements. If a building’s only options were pathways that would potentially conflict with historic preservation requirements, those would supersede BPS requirements. Additional Context Some building efficiency work will happen even without an adopted BPS, given that buildings are upgraded and improved to a degree without regulation. When existing equipment reaches the end of its useful life, replacing it with the lowest cost option typically represents an improvement in the existing equipment’s efficiency. For some buildings, achieving BPS targets represents a small investment on top of an existing cost or replacing equipment at the end of its useful life. That is estimated to account for about $25 million of the $185 million in total projected BPS community costs, and an estimated 5-8% of the total GHG reduction is likely to occur in these buildings regardless of policy adoption. Incentive Versus Regulatory Framework Utility-sponsored energy efficiency programs in Fort Collins date back to 1982, when Utilities launched education and load management programs. Official action to incorporate efficiency in a clean electricity supply began in 2003, when the City adopted the Electric Energy Supply Policy. Staff, the citizens’ electric board (now Energy Board), and members of City Council all sought opportunities to pursue clean energy goals. The policy resulted in a commitment to fund demand side management (DSM) customer rebates, and Utilities’ first formal DSM plan budget was approved in 2004. Without incentives, behavioral intervention and other market efforts, we forecast Fort Collins’ community electric load would be about 22% higher. Incentives delivered through efficiency-focused programs will continue to be a key component of delivering reliable, affordable, and environmentally-responsible electricity. Staff recommendation of a regulatory approach in BPS will only be successful with continued funding and resources dedicated to helping commercial customers improve building energy use and reduce waste. Outcomes from building efficiency not only help individuals reduce building operation expenses over time but also benefit the broader community by lowering upward pressure on utility rates. The following chart shows recent achievements through incentive-based energy efficiency programs, as well as forecasted achievement supported by a market potential study. Page 105 Item 4. City Council Work Session Agenda Item Summary – City of Fort Collins Page 6 of 8 For discussion purposes, staff have provided a comparison to develop several options for Council to consider and provide feedback. Council Options and Discussion Staff are seeking Councilmember feedback and preferences on policy levers related to the BPS regulatory framework. The following options have been developed as a starting place for Council discussion, and the graphic below demonstrates electric savings associated with each option on top of the existing ‘business as usual’ economic (incentive) based approach. Option 1: Proposed BPS policy In alignment with Council priority #6 and OCF outcomes, staff recommend Council pursue the original community Technical Committee and Task Force recommendations, with the exception of pushing back the compliance deadline to 2032. This timeline allows time for a broader community engagement and Community Electricity Savings Options over ‘Business as Usual’ Savings Page 106 Item 4. City Council Work Session Agenda Item Summary – City of Fort Collins Page 7 of 8 compliance period for building owners, and aligns with the original recommendation to have a minimum of six years for building owner reporting and compliance. Option 2: Modified BPS Staff have used the policy levers identified to develop a modified BPS approach. This modified approach represents a starting place for Council discussion. The combination of the policy levers selected represents a 25% reduction in emissions impact from the proposed policy (Option 1).  Extend timeline for compliance to 2035: Longer timeline better supports the business community in periods of economic uncertainty.  Reduce maximum reduction “cap” by 5%: This could minimize the potential out-of-pocket costs for individual buildings.  Exclude 5,000-10,000 square foot buildings: This could minimize the policy impacts to local small business by reducing the total number of buildings covered. Trade-offs associated with levers used to modify the policy are captured in the table below: Option 3: Optimize Utilities Incentives with 2050 Climate Tax With community and staff support, 2050 tax dollars are an opportunity to enhance existing incentives and are in alignment with the 2050 ballot language. Analysis confirms that directing the maximum amount of 2050 tax funding allowed for sustainability efforts (approximately $30 million over six years) to additional incentives could produce approximately 26,500 megawatt-hours (MWh) of additional electric savings, compared to 84,600 MWh BPS electric savings (see Community Electricity Savings Options over ‘Business as Usual’ Savings graph above). Option 4: Business as Usual Utilities will continue using enterprise funds to provide incentives for the voluntary installation of high- efficiency equipment in commercial businesses. Efficiency programs are less expensive than the cost of purchasing additional electricity and are part of our plan to provide reliable, affordable, environmentally- friendly electricity to the community. Page 107 Item 4. City Council Work Session Agenda Item Summary – City of Fort Collins Page 8 of 8 NEXT STEPS Staff are open to feedback on tradeoffs from Councilmembers and are prepared to proceed with an incentive or regulatory approach. ATTACHMENTS 1. BPS Customer Journey Map 2. Energy Board Memo, July 15, 2024 3. Air Quality Advisory Board Memo, December 16, 2024 (updated version coming soon) 4. Natural Resources Advisory Board Memo, October 16, 2025 5. Economic Advisory Board, August 21, 2024 (updated version coming soon) 6. Presentation Page 108 Item 4. Headline Copy Goes HereBuilding Owner Representative BPS Journey 1 Potential Pain Points City Support / Mitigation Strategies •Overwhelming information and technical language •Concern for staff resources and availability •Concerns around costs and required actions •Change is hard and this is a paradigm shift Moments that Matter •Technical language •Understanding the relationship between BPS and other regulations •Difficulty understanding applicability to diverse building types and uses •Time required for self/staff education •Questioning “Why?” •Unclear cost/benefit •Too many options •Feasibility of various options (is a waiver/adjustment needed?) •Effort to develop a cost recovery strategy •Time-consuming planning and coordination •High upfront costs •Managing tenant impact and partnering •Interdependencies across projects •Preparing and submitting waiver/request for adjustment •Finding trusted contractors •Coordinating with contractors •Coordinating internal resources •Unexpected issues/delays •Managing new equipment •Navigating process for rebates, grants and loans •Organizing records •(If applicable) Request for adjustment •Navigating online platform 1:1 Personalized Support: •Help Center/Help Line •Technical Navigator •Financial Navigator Resource Hub (public-facing) and Building Owner Portal Communications including rationale 1:1 Personalized Support: •Help Center/Help Line •Technical Navigator •Financial Navigator Resource Hub (public-facing) and Building Owner Portal Communications including information on pathways and off-ramps Tenant-Building Owner Education 1:1 Personalized Support: •Help Center/Help Line •Technical Navigator •Financial Navigator Early adopter incentives Contractor Education Phased implementation Resource Hub (public-facing) and Building Owner Portal Tenant-Building Owner Education 1:1 Personalized Support: •Help Center/Help Line •Technical Navigator •Financial Navigator Publicly transparent compliance tracking Alignment of target metrics and existing building data (publicly available) Target and timeline adjustments; Waivers Resource Hub (public-facing) and Building Owner Portal Negative Sentiment Positive Sentiment Communications to covered buildings: •Rationale •Current and target score/ requirements •Compliance pathways and off- ramps •Info on Technical Support and Financial Navigator 1:1 Personalized Support: •Help Center/Help Line Resource Hub (public-facing) and Building Owner Portal Neutral Sentiment Page 109 Item 4. Headline Copy Goes Here 2 Pain Point Mitigation Strategy Alignment 2 Journey Phase Potential Pain Points Mitigation Strategies Awareness Overwhelming information and technical language •1:1 Support: Help Center & Support Line •Resource Hub: FAQs, robust informational guides Finding and navigating relevant information •1:1 Support: Help Center & Support Line •Building Owner Portal: Targeted material including compliance guides, promotion of available resources, etc. •Communications: Current and target score, off-ramps Concern for staff resources and availability •1:1 Support: Awareness of Technical Navigator and Financial Navigator Fear, frustration, and uncertainty due to costs and required actions •1:1 Support: Help Center & Support Line •Resource Hub: Case Studies of successful implementations •Communications: Targets and rationale, energy use and requirements, awareness of Technical and Financial Navigator and off-ramps Change is hard and this is a paradigm shift •1:1 Support: Help Center and Support Line •Resource Hub: Public-facing support and information including policy rationale Understand Requirements Technical language •1:1 Support: Help Center & Support Line, Technical Navigator •Resource Hub: Public-facing support and information •Building Owner Portal: Portal with targeted resources, tools and information specific to Building OwnersUnderstanding the relationship of BPS with other regulations Difficulty interpreting performance metrics •1:1 Support: Help Center & Support Line, Technical Navigator •Building Owner Portal: Applicability guidelines, forecasting calculator tool •Benchmarking Transparency Map Difficulty understanding applicability to diverse building types and uses •1:1 Support: Help Center & Support Line, Technical Navigator •Resource Hub: Case Studies, Property Lookup Tool, robust informational guidelines •Building Owner Portal: Portal with targeted resources, tools, and information specific to each building owner •Benchmarking Transparency Map Time required for self/staff-education •1:1 Support: Technical Navigator, Financial Navigator •Resource Hub: Compliance checklists,list of qualified contractors Questioning: “Why do I need to do this?” •1:1 Support: Help Center & Support Line •Resource Hub: Public-facing support and information •Communications: BPS policy rationale Pain points are aligned with mitigation strategies to eliminate poor experiences, remove barriers, and enhance journey effect iveness. Page 110 Item 4. Headline Copy Goes Here 3 Pain Point Mitigation Strategy Alignment Journey Phase Potential Pain Points Mitigation Strategies Assess and Plan Unclear cost/benefit analysis •1:1 Support: Financial Navigator, Technical Navigator, Help Center & Support Line •Resource Hub: Forecasting calculator tool, case studies with examples of buildings’ reductions, Costs and payback, cost/benefit information, Financial Hub (rebates, federal/state/local incentives, green financing options) •Building Owner Portal: Portal with resources, tools, and information specific to each building owner Overwhelmed by multiple upgrade options •1:1 Support: Technical Navigator •Resource Hub: Forecasting Calculator Tool, Case studies with examples of buildings' EUI and required reduction , Examples of common upgrades •Building Owner Portal: Forecasting calculator tool •Phased implementation allows more time for smaller buildings Feasibility of various options: “Do I need a waiver/adjustment?” •1:1 Support: Help Center & Support Line, Technical Navigator, Financial Navigator •Resource Hub: Technical guidance documents, Information on adjustments, credits, and waivers •Communications: Various compliance pathways available including off -ramps to assure targets are achievable Effort to develop a cost recovery strategy for building owner •1:1 Support: Financial Navigator •Building Owner Portal:Forecasting calculator tool •Resource Hub: Financial Hub (rebates, federal/state/local incentives, green financing options), cost/benefit information •Communications: Various compliance pathways available including off -ramps to assure targets are achievable Time consuming and complex planning and coordination across teams •1:1 Support: Technical Navigator •Resource Hub: List of qualified contractors, compliance guide and roadmap, case studies illustrating various compliance pathways •Tenant-Building Owner Education (community outreach events) Take Action High upfront costs (rebates or tax deductions are after the initial payments) •1:1 Support: Financial Navigator •Resource Hub: Cost/benefit resources, Financial Hub (rebates, federal/state/local incentives, green financing options) •Incentives for early adopters and under-resourced buildings Managing tenant impact •Resource Hub: Case studies illustrating various compliance pathways, cost/benefit resources •Tenant-Building Owner Education (community outreach events) Tenant partnership required for success •Resource Hub: Cost/benefit resources •Tenant-Building Owner Education (community outreach events) Interdependencies across projects •Resource Hub: Case studies illustrating various compliance pathways •1:1 Support: Technical Navigator •Building Owner Portal: Forecasting calculator tool, targeted resources, tools and information •Phased implementation allows more time for smaller buildingsPage 111 Item 4. Headline Copy Goes Here 4 Pain Point Mitigation Strategy Alignment 4 Journey Phase Potential Pain Points Mitigation Strategies Take Action Preparing and submitting waiver/request for adjustment •1:1 Support: Help Center & Support Line, Technical Navigator •Building Owner Portal: Portal with resources, tools, and information specific to each building owner Coordinating projects with contractors •1:1 Support: Technical Navigator to help understand contractor bids •Contractor Education •Resource Hub: List of qualified contractors Designating and coordinating internal resources •1:1 Support: Technical Navigator, Financial Navigator •Resource Hub: Case studies illustrating various compliance pathways, guidance documents Unexpected issues and/or delays •1:1 Support: Help Center and Support Line •Contractor Education •Target and timeline adjustments along with waivers available to buildings unable to comply at deadline Fine-tuning and calibrating new equipment •1:1 Support: Technical Navigator •Resource Hub: Public-facing support and information, guidance documents Scheduling trusted contractors •Resource Hub: Link to list of qualified contractors •Contractor Education Navigating process for rebates, grants and loans •1:1 Support: Financial Navigator •Resource Hub: Financial Hub (rebates, federal/state/local incentives, green financing options) •Building Owner Portal: Forecasting calculator tool Reporting Organizing building owner records •1:1 Support: Help Center & Support Line (CRM tracks all program documentation and communications) •Building Owner Portal: Archive of submitted documents •Benchmarking Transparency Map: Includes publicly available compliance and usage information •Target metrics align with existing building data/ transparency map (If applicable) Issue remedy or request an adjustment •1:1 Support: Help Center and Support Line, Technical Navigator •Target and timeline adjustments along with waivers available to buildings unable to comply Online forms learning curve •1:1 Support: Help Center and Support Line •Resource Hub: Compliance guides and supporting documents Online platform usability •1:1 Support: Help Center and Support Line •Resource Hub: Compliance guide and supporting documents •Building Owner Portal: Portal with resources, tools, and information specific to each building owner Page 112 Item 4. Utilities – Energy Board 700 Wood St. Fort Collins, CO 80522 970.221.6702 970.416.2208 - fax fcgov.com M E M O R A N D U M DATE: July 15, 2024 TO: Mayor Arndt and City Councilmembers FROM: Margaret Moore, Energy Board Vice Chairperson RE: Support for Building Performance Standards The Energy Board has considered the Building Performance Standards as proposed by staff at the April 23, 2024, Council meeting, in accordance with our chartered duties and functions, specifically: (1) To advise the City Council and staff regarding the development and implementation of the Our Climate Future Plan (OCF) including tracking of the staff developed Council Action Roadmap for OCF; (2) To advise the City Council and staff in developing City policies that encourage the incorporation of energy conservation and efficiency, carbon emissions reduction and renewable energy into the development and provision of City utility services, the design and construction of City transportation projects, and the way in which the City impacts the overall built environment within the community; (3) To advise the City Council and staff regarding the alignment of energy programs and policies with City, ratepayer and community values and service delivery expectations. Based on our review and staff presentations, we strongly agree with Staff’s recommendation and encourage City Council to adopt Building Performance Standards. In making this recommendation, we note that the existing building stock in Fort Collins contributes more than two thirds of the community’s carbon emissions. Implementing Building Performance Standards is the most impactful direct action City Council can take to address the climate emergency and reduce carbon emissions to meet the community’s 2030 carbon reduction goals. Building Performance Standards align with the City’s Our Climate Future, under Big Move 6. The carbon savings impact of implementing Building Performance Standards is projected to be just under that of all of the City’s other efficiency programs combined. Building Performance Standards are also linked to improved health, safety, comfort, resilience, reduced energy burden, economic growth and increased competitiveness, higher building occupancy and tenant retention, increased productivity of occupants, mitigation of utility impacts of rising temperatures for both the Utility as well as the rate payer, and improved indoor and outdoor air quality. Additionally, because improved energy efficiency reduces overall energy use, the community will be in a better position to achieve its renewable energy goals by enriching the impact of new and existing solar, as well as new and existing battery storage and other distributed resources. Importantly, we understand that Building Performance Standards incorporate provisions intended to reduce the burden on the regulated community and assist with compliance. Those provisions include targets adjusted to building size and function and normalized to ensure fair application. Off-ramps are incorporated to accommodate special circumstances that may make compliance impractical (for example, a building slated for demolition). We also note and support the considerations for lower-income housing. Docusign Envelope ID: 30F5A3C5-E3A6-429B-98D6-C09BD0C2D2B4 Page 113 Item 4. Staff also shared their concept of a partially or fully dedicated project facilitator. Among other duties, this individual would assist building owners and associations in pursuing grants and implementing efficiency projects. We view this as a high leverage position that would easily pay for itself in terms of financial benefits to those affected by the Building Performance Standards and the City at large. In summary, we find Building Performance Standards to be well thought out and drafted, with a high likelihood of contributing to the City’s conservation, efficiency and carbon emissions reduction goals. We are pleased to give them our support and strongly recommend their adoption. Thank you for the opportunity to review and comment. Respectfully submitted on behalf of the Energy Board, __________________________ Margaret Moore, Vice Chairperson Energy Board cc: Katherine Bailey, Project Manager Brian Tholl, Senior Manager, Mechanical Engineer Docusign Envelope ID: 30F5A3C5-E3A6-429B-98D6-C09BD0C2D2B4 Page 114 Item 4. City Clerk’s Office 300 LaPorte Avenue PO Box 580 Fort Collins, CO 80522 970.221.6515 970.221.6295 - fax Boardsandcommissions@fcgov.com MEMORANDUM DATE: October 20, 2025 TO: Mayor and City Councilmembers FROM: Dan Welsh, Chair of the Air Quality Advisory Board RE: Building Performance Standards Dear Mayor and Councilmembers, For the City to achieve its ambitious greenhouse gas (GHG) emission reduction goals and improve its air quality, the Air Quality Advisory Board (AQAB) recommends adopting the Building Performance Standards (BPS) policy, with only delays to the previously established timeline that are deemed absolutely necessary. Successful and timely adoption remains critical to reducing the energy burden of our community while protecting the health and safety of our residents, economy, and environment. Over the course of its history of nearly 40 years of trial, investigation, piloted implementation, and review, Fort Collins Utilities staff have sought alternatives to the regulatory approach that is under proposal. These efforts have included incentives, education, and encouragement for behavioral changes. Despite these efforts, the desired outcomes have not been met. This has led to the development of the currently proposed regulatory approach that will help to move our community more effectively toward climate and air quality goals. The benefits of BPS, along with associated decreases in the production and release of various greenhouse gases, support Council Priority 6: Reduce climate pollution and air pollution through best practices, emphasizing electrification; and Our Climate Future’s Big Move 6: Efficient, emissions free buildings. Reductions in demand for energy production will decrease emissions of ozone precursors and help to improve outdoor air quality. Improvements to buildings’ heating and ventilation (HVAC) systems will also assist in improving indoor air quality. We encourage the consideration of overall energy usage as well as climate impacts when determining BPS compliance options. This can be achieved through alternative compliance options based on greenhouse gas intensity or GHG percentage reduction goals. Such options are included in the State’s BPS program for buildings larger than 50,000 sq ft, and they allow for a greater degree of electrification and reduction in GHG emissions. These could be easily incorporated into the City’s proposed BPS, but if this would further delay implementation, AQAB would suggest adding this option in a later iteration of the program. AQAB strongly urges the City Council to implement the policy changes recommended within the BPS proposal without delay to the 2030 plan. If you choose to extend the deadlines beyond 2030, we recommend consideration of incentives for early adopters who meet the original 2030 deadline. Immediate and urgent action is needed to improve building standards to advance Council Priority 6. Page 115 Item 4. Very Respectfully, The Air Quality Advisory Board cc: Kelly DiMartino, City Manager Jacob Castillo, Chief Sustainability Officer Kelly Ohlson, City Council Liaison to the AQAB Selina Lujan de Albers, Manager Environmental Sustainability & AQAB Staff Liaison Katherine Bailey, Program Manager, Energy Services Page 116 Item 4. MEMORANDUM NATURAL RESOURCES ADVISORY BOARD DATE: October 16, 2025 TO: Mayor and City Council Members FROM: Natural Resources Advisory Board SUBJECT: Building Performance Standards Dear Mayor and Councilmembers, On September 17, 2025, Katherine Bailey (Project Manager, Energy Services) presented to the Natural Resources Advisory Board (“Board”) regarding the proposed Building Performance Standards (BPS) policy. Buildings are among the largest contributors to greenhouse gas (GHG) emissions in urban areas. Sitting at the intersection between economic, environmental, and physical health, the proposed policy would allow for a significant reduction of GHG emissions through increased efficiency in addition to substantial avoided costs (estimated at $630 million by 2050) throughout the community in the future. The standards would also improve indoor air quality and produce public health benefits. The Board would like to express its strong support for the adoption of the BPS policy. Rebates and incentives have been in place since 2002, and while these programs have accounted for a large portion of historic savings, they have not been able to decrease the community’s overall electricity use, which indicates a regulatory pathway is needed. As a Board dedicated to addressing the climate and energy crisis, we are deeply concerned our 2030 GHG reduction goals will not be met without adoption of this policy. This policy also directly supports City Council Priority #6: Reduce climate pollution and air pollution through best practices, emphasizing electrification and Our Climate Future Big Move 6: Efficient, Emissions Free Buildings. The Board supports the following key areas of the policy and implementation plan: ● Covered Buildings - Multi-family and commercial buildings greater than or equal to 5,000 square feet. This strikes an appropriate balance between capturing a meaningful amount of the City’s buildings and energy use while focusing on up-front costs to entities that are in a better position to make investments. ● Efficiency Targets - Adoption of Energy Use Intensity (EUI) targets. Page 117 Item 4. ● Alternative Compliance Pathways - Resources and off-ramps such as EUI reduction caps, timeline and target adjustments, waivers, and additional support for under-resourced buildings. ● A technical and financial navigator position to provide personalized support to building owners throughout their adoption journey as well as expansion of the incentive-based framework using dollars from the 2025 Tax dedicated to climate initiatives. Adopting a BPS policy is not just a climate imperative but a strategic investment in the health, economic prosperity, safety, and resilience of our community, especially in light of federal and state budget cuts and loss of tax incentive programs targeting GHG emissions. These issues call on the City to take a firmer stance in meeting 2030 goals. Improvements in building efficiency will also mitigate rising costs for Fort Collins ratepayers. This is because Platte River Power Authority will be able to avoid or defer investments in new generation resources that may otherwise have been necessary due to electricity demand increases from electric vehicles, population growth, building electrification, and other contributors. The BPS policy will also support the development of small businesses and skilled workforces that will be necessary for the deployment of clean technologies and services to implement the policy. Thank you for your time and consideration of this policy decision that will have positive long-term impacts on future community resilience and health. Very respectfully, Kelly Stewart Chair, Natural Resources Advisory Board cc: Kelly DiMartino, City Manager Jacob Castillo, Chief Sustainability Officer Kelly Ohlson, City Council Liaison to the NRAB Honore Depew, Sr. Manager Environmental Sustainability & NRAB Staff Liaison Katherine Bailey, Project Manager, Energy Services Page 118 Item 4. MEMORANDUM DATE:Aug 21, 2024 TO:Mayor and Councilmembers CC: Kelly DiMartino,City Manager; Tyler Marr,Deputy City Manager; Jacob Castillo,Chief Sustainability Officer; SeonAh Kendall,Economic Health Director; Brian Tholl,Sr Manager; Katherine Bailey,Project Manager FROM:Braulio Rojas,Chair –Economic Advisory Board; Erin Gray,Vice-Chair –Economic Advisory Board;and Members,Economic Advisory Board for 2024 RE:BUILDING PERFORMANCE STANDARDS Recommendation from the City of Fort Collins Economic Advisory Board (EAB): The EAB agrees with and recognizes the importance of the Building Performance Standards for reaching City climate objectives.We also applaud the Energy Services team for their robust research and proposal.However,the Board recommends that Council consider the following factors or trade-offs in its decision-making process which we feel may not yet be sufficiently explored: ●Return on investment:The Energy Services team identified a return on investment of $0.85 for every $1 spent between 2024 and 2035 for the BPS strategy,but this value only considers energy savings.This value does not consider other benefits and factors that can directly improve the ROI for building owners and businesses such as access to State and Federal financial resources. ●Co-benefits of BPS:It is important for Council to also consider benefits that are not easily monetizable or incorporated into a building owner ’s accounting but that contribute to other City goals.Well-noted benefits of BPS include:improvements in indoor air quality,avoided GHG emissions and social damages (included in Energy Services ROI estimate),improved climate resilience to temperature fluctuations,job creation and improved worker productivity,and increase in ability to attract new businesses due to the City’s reputation as a climate leader. ●Transaction costs:Building owners and businesses will struggle to find time to navigate the technical and financial resources available to reduce their cost Page 119 Item 4. burden and it is not clear how the City’s planned educational resources and knowledge hubs will reduce these transaction costs.The technical complexity of the BPS ideally should be matched with technical support resources. ●Cost Burden on Businesses:Building owners may pass any associated costs of BPS implementation onto businesses,which are already grappling with inflation,higher wages,increased costs of goods,and substantial property tax hikes. ●Business Mobility:In today’s mobile business environment,we must ask—what incentives are keeping businesses in Fort Collins?We suggest the City encourage incentives to business owners for retention,rather than imposing fines for non-compliance,as in the initial proposal. ●Fort Collins Revenue Reliance:To maintain a well-funded city,it's essential to bolster our business community as 56%of the City's revenue is derived from sales tax.Escalating costs could potentially risk businesses relocating from Fort Collins and ultimately jeopardize the City’s financial stability. The EAB recommends taking the time to strengthen the economic case for BPS and engage with relevant stakeholders to craft a plan that aligns with both the City's climate goals and the economic vitality of our business community when businesses have not yet fully recovered from the last economic recession.Our recommendation is to evaluate all City owned buildings against the BPS for an analysis of the cost feasibility. Further,we recommend implementing the same feasibility study with Colorado State University.We recognize that BPS is the most powerful and direct policy action to reduce GHG emissions by 2030,but believe strengthening the economic case can reduce potential negative impacts on building owners,businesses,and our local economy,and create stronger community buy-in. ADDENDUM: Please also consider the ongoing lawsuits regarding Energize Denver's Building Performance Standards,which have led to a halt in all building development in Denver. Reference:Colorado Chapter Files Lawsuit Challenging Building Performance Standards. Page 120 Item 4. Page 121 Item 4. Headline Copy Goes Here Energy Services Director Brian Tholl Building Performance Standards Policy Update 10-28-2025 Page 122 Item 4. Headline Copy Goes HereQuestions for Council 2 •Do Councilmembers have feedback on the Building Performance Standards (BPS) policy levers identified? •Do Councilmembers support advancing a BPS regulatory framework for adoption? Page 123 Item 4. Headline Copy Goes HereBuilding Performance Standards (BPS) Compliance •BPS require buildings to meet energy performance targets by specific deadlines.​ •BPS focus on flexibility, providing options and off-ramps. •Efficient buildings are already meeting performance targets. BPS drive gradual efficiency improvements in existing buildings Building A Building B Building C Bu i l d i n g E n e r g y U s e Baseline Year Interim Target 2032 Target Time 3 Page 124 Item 4. Headline Copy Goes HereBPS Overview: Covered Buildings in Fort Collins Building Size Building Count Building Count Timeline Reduction Target Reduction Target Upgrade Cost (Per Square Foot) Number of total buildings Buildings that need to act Compliance requirement timeline Individual building reduction maximum Average reduction to target 5,000- 10,000 square feet 310 200 (65%)2035 15%9%$4.10 to $4.60 10,000+ square feet 780 520 (66%)2030 25%13%$4.70 to $5.10 State covered 50,000+ square feet 80 60 (77%)2030 29%17%$4.40 to $4.70 Based on 2023 reported benchmarking data; some buildings are campuses which include multiple structures Excludes buildings without 2023 reported data 4 Page 125 Item 4. Headline Copy Goes HereWhere We’ve Been 5Staff have taken an intentional approach to policy development for three years November 2022: Development work began March 2023: Task Force work began July 2023: Technical Committee work began April 2024: City Council Work Session June 2024: City Council Work Session January 2025: City Council Work Session January 2025: Customer journey and technical pilot work began Page 126 Item 4. Headline Copy Goes Here2025 BPS Workplan Overview 6 Goals •Test and/or validate staff assumptions used in policy development •Test and/or validate process steps and resources required to implement a successful policy •Identify tensions and opportunities associated with economic impact and provide information regarding implementation feasibility Methods •Conduct journey map activity •Identify process, pain points and associated mitigation strategies for implementation •Interview sample of covered building owner representatives to confirm •Conduct technical assessment for six local buildings exceeding targets and of various vintage Staff have worked with building owners on a set of activities to provide additional policy insightsPage 127 Item 4. Headline Copy Goes HereBPS Journey Map Generates a shared understanding of the BPS journey Identifies potential points of friction and mitigation strategies early for implementation 2 1 7 43 12 1369 5 8 10 11 Reporting Receives Notification Take ActionAssess and PlanUnderstand RequirementsAwareness 15 16Engage with City Provided Resources Discuss with Internal Stakeholders Review Policy Details Clarify Requirements Identify Internal Staff Responsibilities Confirm/Adjust Reported Energy Usage Explore Upgrade Options Develop a Compliance Plan, including Alternative Compliance Options Secure Funding Obtain and Select Contractor Bids Implement Upgrades Monitor Impacts Gather Performance Data Submit Reporting/ Adjustment Request/Waiver Receive Confirmation and/or Feedback 17 Reengage Until Compliant, If Needed 14 Compliance The journey map incorporates feedback from building owner representatives to support successful implementation​ BPS journey map provides insights into regulatory process for staff and community 7 Page 128 Item 4. Headline Copy Goes Here 8 Technical Support Pilot Findings Key Takeaways •Cost of compliance variability ($0.15/square foot - $13.20/square foot) •Weighted average of upfront investment of $4.64/square foot •Compliance pathways are technically achievable •Upgrades vary from behavioral to full HVAC system upgrades •Individual building owner awareness, understanding requirements, and assessment and planning steps will likely take a minimum of 12 months Page 129 Item 4. Headline Copy Goes Here 9 Pilot Building Economic Summary Property Building size (square feet) Building EUI: kBTU/square foot BPS target* for propertykBTU/square foot Estimated cost for compliance before rebates** Simple payback with local rebates Cost for compliance per square foot** Municipal building 5,500 110 36 $1,560 0.4 yrs $0.28 Mixed use museum / restaurant 17,875 269 103 $236,000 20.6 yrs $13.20 Office (1)31,669 102 56 $4,500 6.8 yrs $0.15 Office (2)44,142 110 63 $240,000 19.4 yrs $5.43 Multi-family 104,826 68 43 $490,300 19.1 yrs $4.68 Restaurant 7,066 437 185 $3,100 1.2 yrs $0.43 *All pilot buildings, due to existing energy use intensity (EUI), would be required to achieve the maximum reduction cap of 1 5% or 25% to achieve compliance **Cost for compliance in some cases includes replacing equipment that is past the end of its useful life Page 130 Item 4. Headline Copy Goes Here 10 Municipal Building Implementation: East Parks Shop Assess and Plan •Chose best pathway •15% reduction required; 25% reduction projected based on work completed •Pathways include upgrades underway at time of assessment (lighting, now complete) Take Action •In-house staff installed lighting, reprogrammed thermostats •Contractor work to install additional programmable thermostats •Total cost of $3,360 ($1,560 needed to meet BPS target) •No timeline or target adjustments likely at this time due to simplicity and cost of upgrades. Compliance •Monitor and maintain efficiency level Page 131 Item 4. Headline Copy Goes Here 11 Historic Building Implementation Assess and Plan •Chose best pathway •Pathways include upgrading two large pieces of equipment at end of useful life Take Action •Option 1: Implement upgrades –total cost $236,000 •Option 2: Apply for target or timeline adjustment (‘off–ramp’) •Reduced target: •Quantified savings possible throughout facility, not likely a target adjustment would be granted. •Extended timeline: •Likely would be granted to spread work over several years to reduce annual upgrade expenditure, and to align with end of useful life replacement •Option 3: Non-compliance and be subject to municipal citation Compliance •Monitor and maintain efficiency level Page 132 Item 4. Headline Copy Goes Here Incentive Versus Regulatory Approach 12 Page 133 Item 4. Headline Copy Goes Here Develop policy framework for improving performance of built environment OCF Driven •Building emissions reduction •Optimize energy use for pursuing 100% renewable electricity Building Performance Standards Policy 13Areas of Impact –Existing Commercial and Multifamily Buildings Policies Building Codes Standards Utility Rates Incentives Financing Other City Fees Education Awareness Transparency Technical Assistance Contractors & Workforce Training Page 134 Item 4. Headline Copy Goes Here 14 Incentive Versus Regulatory Considerations Incentives Regulatory Mechanism Encourages voluntary upgrades through financial or technical support (e.g., rebates, tax credits, grants) Mandates performance improvements via energy standards with compliance timelines and penalties Predictability of Outcomes Outcomes depend on participation rates; emission reduction uncertain Provides certainty and measurable progress toward climate goals Administration Requires increased,ongoing funding, easy to pivot and adjust Requires strong enforcement, consistent implementation, ongoing tech/admin support Market impacts Stimulates innovation, pilot projects, and workforce growth Drives widespread adoption of proven technologies and practices Page 135 Item 4. Headline Copy Goes Here 15 Electric Reduction Trends and Forecast ■Expansion of Economic Using 2050 Tax Revenue ■Regulatory (BPS) ■Economic (Utilities Incentives) Page 136 Item 4. Headline Copy Goes Here Policy Framework Discussion 16 Page 137 Item 4. Headline Copy Goes HerePolicy Lever Trade-offs Policy Lever Potential Change Economic/Mitigation Impact Trade-off 1. Timeline Extend compliance 3-5+ years Minimal –Shifts outcomes +Allows additional planning, flexibility during economic uncertainty -Missing interim policy goals 2. Maximum Reduction Cap Reduce cap by 5%High –average 20% of costs for individual buildings +Reduced individual building investment -Reduced long-term benefits 3. Covered Buildings Exclude buildings 5,000- 10,000sf (310 buildings) Minimal –5% reduced policy impacts, costs +Reduced operating expense pressure -Does not improve energy use or building conditions for small business Exclude multi-family buildings (148 multi-family campuses) High –17% reduced policy impacts, costs +Reduces upward housing affordability pressure -Owners not required to reduce rate pressure/improve living conditions for tenants Exclude New Construction (2024 IECC) Minimal –inflation / NPV -Dependance on compliance with 2024 IECCPage 138 Item 4. Headline Copy Goes Here 18 Options Option 3: Complement utility incentives with 2050 tax incentives Option 2: Modified BPS policy approach 1. Timeline: 2035 or later 2. Reduce cap by 5% 3. Remove small buildings +/-new construction Option 4: Business as usual Option 1: Proposed BPS policy approach 2032 timeline Page 139 Item 4. Headline Copy Goes HereQuestions for Council 19 •Do councilmembers have feedback on policy levers identified? •Do councilmembers support advancing to first reading with a BPS regulatory framework? Page 140 Item 4. Headline Copy Goes Here Thank you! Brian Tholl Energy Services Director 20 Page 141 Item 4.