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Home My WebLink AboutCOUNCIL - AGENDA ITEM - 12/14/2010 - UPDATE: GREEN BUILDING PROGRAM, PROPOSED BUILDING DATE: December 14, 2010 STAFF: Brian Janonis WORK SESSION ITEM John Phelan, Felix Lee FORT COLLINS CITY COUNCIL Pre-taped staff presentation: available at fcgov.com/clerk/agendas.php SUBJECT FOR DISCUSSION Update: Green Building Program, Proposed Building Code Green Amendments EXECUTIVE SUMMARY The goal of an ongoing Green Building (GB) Program is to increasingly align Fort Collins' built environment with community goals of reduced carbon emissions, reduced energy use and reduced water use. Staff has developed two proposed packages of Building Code Green Amendments for consideration by Council: one each for residential and commercial construction. Staff has also identified several practices that are not part of the recommended packages but are presented as options for Council feedback. The Building Code Green Amendments, through a combination of new, reinstated and refined provisions, support the integration of green building practices into mainstream construction, establish the broader scope of green building in code and advance the performance of buildings in specific areas. The benefit cost analysis for the Building Code Green Amendments shows that: • Initial construction cost increases are expected to be between one and four percent. • The changes provide have benefits over the long term (utility and maintenance savings, increases in property valuation, improved health and productivity). • The community-level benefits align with Fort Collins policy goals. Additional City resources will be needed for implementation of the Building Code Green Amendments. Based on clear direction from Council at this work session, staff will prepare ordinance language for consideration in March 2011. Staff recommends that the revised codes go into effect January 1, 2012. GENERAL DIRECTION SOUGHT AND SPECIFIC QUESTIONS TO BE ANSWERED 1. Does Council support moving forward with the Building Code Green Amendments packages (residential and commercial) as recommended by staff? 2. Which of the Green Amendments options,if any,does Council want staff to develop detailed recommendations? December 14, 2010 Page 2 3. Does Council want to proceed with the Building Code Green Amendments project with the proposed March 2011 adoption timeline or a revised schedule? 4. Assuming a version of these Building Code Green Amendments is adopted in 2011: o Does Council support the staff recommended date for the Code amendments to go into effect? o How will implementation resources for the Community Development and Neighborhood Services department be incorporated into the adoption process? BACKGROUND / DISCUSSION Implementation of a Green Building Program(GB Program)was identified as a City Council priority during the 2010/2011 Budget process. The Utilities department is leading the effort in close collaboration with the Community Development and Neighborhood Services. Green building has a strong policy basis with the 2008 Climate Action Plan, 2009 Energy Policy and 2009 Water Conservation Plan. Areas commonly included under the "green building" umbrella include: • Site and lot development • Resource efficiency • Energy efficiency • Water efficiency • Indoor environmental quality(healthy indoor air, thermal and visual comfort, acoustics) • Operations and maintenance/owner education Green Building Program Goal The goal of an ongoing Green Building Program is to increasingly align Fort Collins' built environment with community goals of reduced carbon emissions, reduced energy use and reduced water use. The GB Program will incorporate both regulatory and market-driven elements to accelerate the market transformation already underway, as shown in Figure 1. Council's direction to consider a code amendment ordinance during the first quarter of 2011 focused the efforts of GB Program work in 2010. Other aspects of the GB Program will continue to be developed in 2011 and beyond. December 14, 2010 Page 3 Figure 1: Green Building Program Elements Voluntary, market-driven, above-code • Provide incentives for projects significantly exceeding minimum codes • Recognize GB innovation + success • Provide education and training Regulation • Building Code Green Amendments • Research and document local Foundation costs + benefits of GB • Develop metrics and tracking system • Revise City policies / codes / processes to address barriers + conflicts related to GB The GB Program was discussed by City Council at work sessions on January 12 and July 13, 2010. The process being used to develop the GB Program and the progress to date is documented by quarterly reports. Information related to the GB Program,prior City Council meetings and quarterly reporting is available at fceov.com/gbp. Fort Collins Green Building Market Continuum Fort Collins already has many examples of green, high-performance buildings. The public sector has embraced high-performance building goals as shown by recently constructed projects by Poudre School District,City of Fort Collins,Larimer County and Colorado State University. There are also a number of private sector projects in both residential and commercial sectors that demonstrate high- performance green building. However,these leading examples still represent a small fraction of new construction in Fort Collins. The continuum ranges from minimally Code compliant buildings to these leading examples of green building. Projects that go further towards "net-zero'and"restorative" buildings are largely still in the academic realm. In addition to this continuum of"green"in building,there are similar continuums of knowledge,skill and commitment throughout the design and construction industries. Using a market transformation approach, the purpose of the GB program is to move the industry and the market "up the scale," recognizing that there are a wide range of starting points. December 14, 2010 Page 4 GB Program work to date has focused on developing a recommended package of GB practices for incorporation into Fort Collins Building Code. Codes represent the minimum acceptable community standards for design and construction of new buildings and renovations or additions to existing buildings. The Codes are the "push" which sets minimum standards, to be complemented by the `'pull" elements of recognition and incentives. Just as the recent adoption of the 2009 International Codes represents an incremental step in moving up the scale,the proposed Building Code Green Amendments represent next steps along the path of integrating green building practices into mainstream construction. Green Building Program Development Process The GB Program development work to date has involved: • The core green building staff team from Utilities Energy Services and the Community Relations and Neighborhood Development department. • The Green Building Program Advisory Committee, comprised of a broad spectrum of community stakeholders,such as the Fort Collins Chamber of Commerce,Fort Collins Board of Realtors and Northern Colorado Chapter of the US Green Building Council. This committee serves as a sounding board as the GB Program is developed. Members are asked to help with two-way communication with their constituencies about the effort. The GB Program Advisory Committee has met three times to date(April,July and November 2010). (See Attachment 6 for a list of members of this committee.) • Two Technical Review Advisory Committees (TRAC), one each for the residential and commercial sectors, have been closely involved with Code development. Members were invited based on their technical and market expertise. Each TRAC typically has met twice a month from May through November 2010,culminating in each group convening separately for a final wrap-up on November 30 and December 1,respectively. (See Attachments 7 and 8 for a list of members of these committees.) • A consultant providing analytical support. Model Green Building Codes Review Initial direction was for the City to adopt a "Green Building Code" as a supplement to the City's existing Building Codes. The intent was to review and potentially adopt one or more of the national model GB Codes or standards. Staff and the TRACs reviewed the National Green Building Standard (residential sector) and International Green Construction Code (commercial sector) for potential adoption in Fort Collins. The conclusions of these reviews were that adopting a supplementary Green Building Code would not be an appropriate solution because: • The City's existing Codes (Land Use Code, Building Code and City Code) already include many elements that support green building. The scope of the model GB Codes cuts across all of the existing Codes. Adoption of a supplementary green building code would create a large number of potential conflicts. December 14, 2010 Page 5 • The GB model Codes were largely created from points-based voluntary recognition tools which allow a highly complex set of optional combinations that would be available as "compliance paths" to applicants. The outcomes of such an approach would be highly variable from one building to the next. • The International Green Construction Code is still in draft public review form. At the July 13 Work Session, staff recommended to City Council that the effort shift from adopting model GB Codes to developing a strategic selection of effective amendments to further"green"the existing Building Codes. A majority of Councilmembers supported the recommendation. In parallel, the.Building Services department led an effort for City adoption of the 2009 editions of the International Code Council's"International Codes"(I-Codes),which are the predominant model codes used in the U.S. The 2009 I-Codes package was adopted by Council in September 2010 and became effective in October 2010. The 2009 I-Code requirements serve as the baseline for the proposed green amendments., Community Outreach In addition to the community involvement via the stakeholder committees, other community engagement activities have included: • Web site. Information and opportunities to provide input are available via the project web pages at fcgov.com/gbp. • Public meetings. All GB Program advisory committee meetings are open to the public. Meetings are listed on the project web site and City web calendar. • Board Commission and other stakeholder meetings. Staff presented updates to many of the City Boards and Commissions,as well as to several other stakeholder groups by request. (A summary of these meetings, along with comments received, is included as Attachment 9.) • Public Open House. A public open house was held on November 17. (See Attachment 9 for a summary of feedback received.) Green Amendments Proposal With assistance from TRAC members,staff has developed two proposed packages of green building practices for consideration by Council: one each for residential and commercial construction. The applicability of individual green building practices to new construction, additions and alterations varies, and is described in the proposal descriptions outlined below. Staff has also identified four practices that are not part of the recommended packages but are presented in Attachment 3 as options for Council feedback. The following information about the green amendments proposals is available on the GB Program web pages at fcgov.com/gbp: • "Amendment-proposal-at-a- lg ance."These summary documents,one each for the residential and commercial proposals,list the proposed green building practices with brief descriptions. (See Attachments 1 and 2.) December 14, 2010 Page 6 • Green Building Practice Summaries.These documents provide additional information about each of the proposed practices. Topics addressed include applicability to new construction and existing buildings, benefits and costs, implementation issues, current practice and context. Themes of the Proposed Green Building Practices A number of cross-cutting themes guided the selection of measures reflected in the proposed amendments: • Broad scope of green building. City Council directed staff to investigate practices that provide a range of benefits, not just those directly tied to City goals (energy, water, carbon) or that have the most favorable economic benefit for the building owner. Proposed amendments will improve health and safety, save energy, save water, divert construction waste from the landfill, improve occupant comfort and productivity and enhance durability of buildings. • Leadership. The intent is for Fort Collins to accelerate the normal process by which green building practices become part of the Building Codes and incorporated into mainstream construction. • Refine current Codes. The 2009 International Code package adopted in September 2010 includes important new elements as well as innovative local amendments adopted in previous Code cycles. The proposed green amendments refine the recently adopted Codes and reinstate several local amendments. • Installed performance. The proposed Code amendments focus on ensuring that components and systems operate at rated performance by emphasizing critical installation details and testing to verify that performance standards are met. • Systems approach. Buildings operate as systems. The performance of one component may influence a number of others,positively or negatively. Several of the proposed practices are based on important interrelationships and only make sense as a package. • Lost opportunities.Many aspects of buildings are relatively easy and inexpensive to address during construction and difficult and expensive to address after completion. Several proposed measures are designed to capture these one-time opportunities. • Reasonable steps. For several measures, the proposal targets achievable steps based on the available infrastructure. The objective of these changes is to catalyze infrastructure growth and, in turn develop capacity to support additional future steps • Residential and commercial alignment. Where appropriate,the proposed amendments align requirements across the residential and commercial codes. December 14, 2010 Page 7 Residential Green Amendments Proposal The residential green amendments proposal includes fourteen specific practices to be incorporated into the Fort Collins Building Code (Attachment 1). These practices are grouped by the common green building categories of resource efficiency, energy efficiency, water efficiency, indoor environmental quality, outdoor environmental quality and operations/maintenance/education. An alternative description of these practices groups them by performance areas,following a"house- as-a-system" perspective. The bundles of measures described below work together to achieve the intended outcomes. • Building envelope performance o Tight construction of the exterior building envelope to be resistant to outside air infiltration (exterior walls, windows, doors, roof-ceiling system, piping and vent penetrations). o Insulation installation standards o Fenestration (window) installation standards • Mechanical systems performance o Heating/cooling system design 0 Commissioning of heating, ventilation and air conditioning systems • Electricity 0 Thermal specifications for electric heat homes • Healthy indoor air 0 Tight construction 0 Safer combustion appliances 0 Materials with low volatile organic compound (VOC) content o Controlled mechanical ventilation providing outdoor air to the building • Other GB practices o Water-efficient fixtures o Construction waste recycling o "Dark-Sky" light fixtures o Owner education Commercial Green Amendments Proposal The commercial green amendments proposal takes a similar approach, including fourteen specific practices (Attachment 2). These practices are grouped in categories of resource efficiency, energy December 14, 2010 Page 8 efficiency, water efficiency, indoor environmental quality and commissioning/operations/ maintenance. Using a "building-as-a-system" perspective, the following bundles of measures described below work together to achieve the intended outcomes. • Building envelope performance o Tight construction o Insulation installation quality o Commissioning • Mechanical systems performance o Commissioning of heating, ventilation and air conditioning systems • Energy savings o Thermal specifications for electric heat buildings o Lodging guest room controls o Outdoor lighting controls • Indoor environment o Materials with low volatile organic compound (VOC) content o Building ventilation systems flush-out o Acoustical control • Other GB practices o Water efficient fixtures o Construction waste recycling o Energy assessments for existing buildings o Owner education Green Amendments—Options for Council Consideration Staff is asking Council for direction on four potential green building practices which are designated as options rather than part of the base green amendments proposal(Attachment 3). This is because each option is quite different in some way from the base package. Staff has not developed details around the options; they are presented as concepts. If the direction from Council is to move ahead on these options, the details will be developed for consideration of a green amendments ordinance in March 2011. December 14, 2010 Page 9 BENEFITS AND COSTS Buildings complying with the proposed amendments will deliver additional benefits compared with buildings complying with the current Code. The objective of the benefits and costs analysis is to provide information for decision making that accommodates multiple perspectives. In principle, building better buildings implies an increase in initial costs which is balanced by long-term benefits. This section describes the scope, approach and results of the analysis completed to date. Scope of Benefit Cost Analysis Benefits and costs are approached from a "triple-bottom-line" perspective, reflecting aspects of social,economic and environmental impacts. The focus of the benefit cost analysis to date has been on new construction. As illustrated in Figure 2 (below), the benefits and costs are addressed at three inter-related scales, represented by concentric circles: • Individual. A specific project, where the impacts are traced to an owner or buyer • Building Sector. The building services industry, which includes design and construction professionals and equipment suppliers or vendors. • Communi /Ecosystem. Local, regional or global costs or benefits. • Categories of costs are shown on left-hand side of the diagram; benefit on the right-hand side. The categories are described below. December 14 , 2010 Page 10 IIIIIIIII Figure 2 : Benefit Cost Analysis Graphic COST BENEFITS COMMUNITY / ECO -SYSTEM environment 000 � � � BUILDING SECTOR BEST PLACES TOLIVE ' utility and 1 Economic training / I _i INDIVIDUAL maintenance jobs health savings I building I `training valuation , � � : �i� occupant / carbon productivity / reduction ` ~ rbuilding 1 s sector , , , , , , Support � � industry investment � materials infrastructure J verification Cost Categories (Figure 2) • Individual, $ $ $ . Increased initial cost to designibuild a building. The "$" signs get smaller in the graphic to represent decreasing costs as the industry moves along a prototypical learning curve. This also represents the range of initial cost increases, depending on the starting point of the construction team. • Building Sector, Training. The building sector will have costs related to training on new construction techniques and compliance requirements . These are near-term costs that will be amortized over many projects . • Building Sector, $ $ $ . Other building sector costs, such as buying new tools or obtaining and maintaining new certifications . These are primarily near-term costs that will decrease over time based on market development, competition and adaptation. • Community, Supporting Materials . There will be pre-implementation phase costs born by the City to cover the development of support materials, staff training and subsidization of industry training. December 14, 2010 Page 11 • Community, Verification Costs. There will be implementation costs related to on-going enforcement and verification, quality assurance and program evaluation. Benefit Categories (Figure 2) • Individual Utility and Maintenance Savings. The green building amendments will lower utility costs for electricity, natural gas, water and wastewater. Several of the green amendments will result in reduced maintenance costs, which may accrue to the occupant and/or owner of the building. • Individual Building Valuation. Green buildings are expected to command an increased value in the marketplace compared with conventional buildings. • Individual Occupant Health and Productivity. The green building amendments will result "better buildings" from an indoor environmental perspective. This in turn results in improved occupant health and productivity. • Building Sector,Jobs. The building sector will realize an increase in job activity for a given amount of construction activity. The green amendments support the expansion of related infrastructures, higher-level contractor skills, increased demand for green services and increased demand for green products. • Building Sector Investment. The building sector will realize increased investment through the supply chain development cycle. Beyond the direct job impact described above, direct suppliers, indirect suppliers, products and materials vendors will develop and mature, resulting in reduced cost premiums over time. • Community Economic Health. The green building amendments support the community's values, pride and identity as a vibrant, environmentally conscious place to live. The community's reputation as such also supports economic health as by attracting investment and local economic development. • Community Infrastructure. The direct results of green building (reduced energy use, water use and waste) have indirect impacts on community infrastructure requirements, such as extending the life capacity of existing investments in power supply, water supply and landfills. • Community Carbon Reduction. The direct results of green building (reduced energy use, water use and waste) contribute directly to the community's goals towards reduction of. carbon emissions.. • Community/Eco-system Environment. The green building amendments reduce environmental impacts associated with construction (resource use, indoor and outdoor environmental quality). The benefit cost analysis is able to quantify only a small number of the cost and benefit categories described above. The remaining costs and benefits can only be evaluated in a qualitative fashion. December 14, 2010 Page 12 For the categories included in the quantitative analysis, ranges of savings and costs were estimated for prototypical buildings. It is important to recognize that the quantitative analysis only tells part of the benefits and costs story. Benefit Cost Analysis— Quantitative Approach The staff green building team, with the support of a consultant, completed a quantitative analysis with the goal of characterizing the primary benefits and costs of the proposed green amendments on typical projects. The primary benefits are the reduced utility costs(electricity,natural gas,water and wastewater) and the primary cost is the increased initial cost of the measure. The analysis used a bottom-up approach based on calculations for each measure within the residential and commercial amendments proposal. The implementation costs of verification and enforcement also followed the approach of estimating the impact on each proposed measure. Two prototype projects were used for the quantitative analysis: • Residential. 1600 square foot ranch over full-finished basement, $250,000 sales price, financed with a 6%, 30 year mortgage • Commercial. 15,000 square foot office building,2 stories,$162 per square foot construction cost($2.4M), 6% mortgage, $14,000 annual utility cost. The quantitative analysis focused on the core set of GB practices which would apply to a typical office building. The team recognizes that these are limited examples of the many types and sizes of buildings in the market. However,the purpose of the benefit cost analysis is to support the decision making process by evaluating the impact for these representative projects. The analysis also assumes that all first costs are passed directly to the "buyer" or "owner" of the building. Results are presented in units of direct dollars and percentage changes in initial cost, utility costs, energy savings, water savings, carbon emissions and verification. The monthly mortgage impact of the initial cost changes is also included. Quantitative Results—Residential Description Range $ Range % Notes Initial Cost Increase $2,500 to $5,000 1% to 2% Percent of Construction Cost Monthly Mortgage $15 to $30 1% to 2% Percent of Monthly Payment Impact Annual Utility Net $50 to $175 2%to 7% Percent of Utility Cost Savings Energy Savings -- 5% to 10% Percent of Annual Use Water Savings -- 5% to 10% Percent of Annual Use Carbon Savings -- 5%to 10% Percent of Annual Emissions Verification -- 0.6 City staff time for plan review and field inspection Based on typical residential project. 1600 square foot ranch with finished basement (3200 square feet total), $250 000 price, 6% mortgage rate $2 600 annual utility cost December 14, 2010 Page 13 Quantitative Results - Commercial -Description Range $ Range % Notes Initial Cost Increase $30,000 to 1% to 4% Percent of Construction Cost $100,000 Monthly Mortgage $180 to $600 1% to 4% Percent of Monthly Payment -Impact Annual Utility Savings $1,800 to $3,450 13% to 25% Percent of Utility Cost Energy Savings -- 25% to 35% Percent of Annual Use Water Savings -- 20% Percent of Annual Indoor Use Carbon Savings -- 15% to 30% Percent of Annual Emissions Verification -- 0.23' Staff time for plan review and field inspection Based on typical commercial project. 15,000 small office building, 2 stories, $162 per square foot construction cost $2.4M 6% mortgage, $14 000 annual utility cost Qualitative Benefit Cost Analysis The consultant also reviewed published regional and national studies of green building benefits and costs relative to individuals as well as communities, economies and ecosystems. This research indicates there are many benefits associated with green,high-performing buildings,including energy and environmental awareness, economic health, community pride and the opportunity to hedge against utility rate increases. The team did not attempt to translate these results to quantified local impacts due to the uncertainty of extrapolating national trends to local conditions. However, the team is confident that similar benefits can be realized at Fort Collins' scale. Highlights from the research include: • Building Valuation o McGraw-Hill Construction report November 2010 Business Benefits of Green Buildings SmartMarket Report: Building & Occupant Performance Driving Green Investment in Existing Commercial Buildings,summary finding showed: +4%ROI, +5% building value & occupancy, -8% operating costs, +1% rental income. http://www.environmentalleader.com/2010/11/18/greenbuild-roundup-day-2- rp een_ bui ldi n gss-yield-substantial-financi al-benefits o Doing Well by Doing Good, Center for the Study of Energy Markets, August 2009. This report based on statistical analysis of green buildings found: (1) systematic evidence that rents for green offices are about two percent higher than rents for comparable buildings located nearby; (2) Effective rents, i.e., rents adjusted for the occupancy levels in office buildings, are about six percent higher in green buildings than in comparable office buildings nearby. http://www.ucei.berkeley.edu/PDF/csemwpl92.pdf o "Evidence of Rational Market Values for Home Energy Efficiency." Rick Nevins The Appraisal Journal,October 1998. Summary: "research indicates there should be December 14, 2010 Page 14 a$10 to$25 increase in market value for every$1 in a home's yearly energy savings." http•//www icfi com/Markets/Community Development/doe files/apj 1098.pdf • Occupant Health and Productivity o Green Building Cost and Benefits, Gregory Kats, 2003. The Report recommends attributing a 1% productivity and health gain to LEED Certified and Silver level buildings and a 1.5%gain to Gold and Platinum level buildings. These percentages are at the low end of the range of productivity gains for each of the individual specific building measures-ventilation,thermal control,light control and daylighting - analyzed above. They are consistent with, or well below, the range of additional studies reviewed in the Report. http://www.usgbccolorado.ori4/downloads/articles/Kats-Green-Buildings-Cost.pdf o Doing Well by Doing Good, Center for the Study of Energy Markets, August 2009. This report based on statistical analysis of green buildings found: (1)A 1% increase in productivity (equal to about 5 minutes per working day) is equal to $600 to $700 per employee per year, or $3 SF per year; (2) A 1.5 % increase in productivity(or a little over 7 minutes each working day) is equal to about$1000 per year,or$4 to $5 SF per year; (3)The relatively large impact of productivity and health gains reflects the fact that the direct and indirect cost of employees is far larger than the cost of construction or energy. Consequently,even small changes in productivity and health translate into large financial benefits;(4)Assuming a longer building operational life, such as 30 or 40 years, would result in substantially larger benefits. http://www.ucei.berkeley.edu/PDF/csemn 192.pdf Benefit Cost Analysis - Conclusions While the quantitative analysis tells only a small part of the benefits costs story, a number of conclusions can be drawn from the research and analysis of the benefit cost analysis. • One to four percent initial cost increases are within typical variance ranges for construction. • The initial cost increases provide benefits over the long term (utility savings, maintenance cost reductions, property valuation, health and productivity). • Near-term building sector costs will be balanced by long-term benefits. • Additional City resources will be needed for implementation,verification and enforcement. • The community-level benefits align with Fort Collins policy goals. RISKS AND UNCERTAINTIES Appraisal/Valuation Staff is aware of potential challenges related to the proposed green amendments associated with valuation, appraisal, and underwriting. These challenges can be real for any building containing features which have not yet been widely implemented in the market. The challenges are not specific to Fort Collins or green building; they are national in scope and part of the challenges buyers face when trying to secure financing for a building they wish to build or buy. December 14, 2010 Page 15 The proposed green amendments are not unlike other Code updates that have occurred on a regular basis for many years. Typically.. Code updates include increased requirements related to health, safety, and energy, many of which are not recognized by the marketplace. The most recent Fort Collins Code update went into effect in October 2010 and, for example, increased prescriptive insulation requirements for single family homes. Appraisal and valuation issues have not generally been an issue for previous code updates in Fort Collins. Code Updates As noted earlier,the City adopted the 2009 International Codes in fall 2010. The International Codes are updated on three year cycles;with the next version available in 2012. The building department is planning on a review and adoption process for the 2012 Codes, which should result in updated Building Codes going into effect by mid-2013. While the 2012 Code update is not yet published, the current draft version includes measures that overlap in scope some of the measures in the proposed green amendments. As a result, some of the GB practices proposed herein will be accelerating the timeline for implementation here by approximately two years. . IMPLEMENTATION PLANNING As an integral part of the Building Code Green Amendments proposal, staff is estimating the resources required to effectively implement the proposed green amendments. Implementation will require staff and funding resources from several departments. The following table outlines general City responsibilities by department: Building Code Green Amendments: Implementation Roles and Responsibilities Community Description Development and Utilities Energy Neighborhood Services Services Development of verification procedures Primary Secondary Development of support materials Secondary Primary Training and Education (contractors, inspectors, public) Secondary Primary Day-to-day implementation (plan review, field inspections, training) Primary Secondary Monitoring and evaluation of the implementation process and results Secondary Primary Implementation Resources Community Development and Neighborhood Services (CDNS) provides processing of building permit applications, plan reviews and building inspections for all work associated with a building permit. Implementation of the proposed Green Building Codes would become a part of the aforementioned, which will increase the processing of applications, plan reviews and building inspections associated with a building permit. Staff anticipates, on average, a 23% (30 hours to 37 December 14, 2010 Page 16 hours) increased workload for Commercial Permits and on average, a 61% (13 hours to 21 hours) increased workload for Residential Permits. In order to maintain the existing level of service (LOS) for commercial and residential building permits and the associated work,CDNS will need to hire an additional 1.0 full time employee(FTE) Building Inspector and a 0.5 FTE Plans Examiner. The December 11 Council special work session includes a discussion of resources for implementation of the Building Code Green Amendments. CDNS has estimated the negative impact on LOS if resources are not provided for implementation. For example, a residential plan review would increase from the existing LOS of approximately 18 days to approximately 29 days and a commercial plan review would increase from the existing LOS of approximately 28 days to approximately 34 days. Pre-implementation Tasks Prior to implementation of the green building amendments, a substantial effort will be required for the development of support materials,training for design professionals,contractors and builders and education for the general public. The Utilities Energy Services budget for GB program development in 2011 and 2012 will support these pre-implementation needs. Recommended Implementation Schedule Adoption of Building Code Green Amendments is scheduled for consideration on March 1 and March 22,2011. Based on this schedule and the pre-implementation activities described above,staff recommends that the Building Code Green Amendments go into effect on January 1, 2012. GREEN BUILDING PROGRAM -NEXT STEPS Building Code Green Amendments • January through March 2011 0 Staff will develop ordinance language for the green building amendments based on Council feedback. o Another round of public outreach is anticipated for February 2011 to solicit recommendations to Council. o City Council consideration of the proposed amendments is scheduled for the March 1 and March 22 Council meetings. December 14, 2010 Page 17 Green Building Program— Continuing Development The green amendments proposal under consideration by Council is one key element of the overall GB Program. In general: • The regulatory components of the program will be the responsibility of the Community Development and Neighborhood Services department, with support from Utilities Energy Services. • The voluntary above-code related aspects of the program will be the responsibility of Utilities Energy Services, with support from Community Development and Neighborhood Services department. GB Program development will continue in 2011-2012 as described in the following table. Green Building Program Development: Continuing Development Community Description Development and Utilities Energy Neighborhood Services Services Development of above-Code incentive and recognition program elements for projects Secondary Primary which demonstrate high performance. Review and consideration of green development practices related to the Land Use Primary Secondary Code. Future Code review cycles to include the green amendments adopted in 2011. In this way, the principles established by the current Primary Secondary process will be carried forward and reviewed for best practices updates on a regular basis. ATTACHMENTS 1. Residential Building Code Green Amendments Proposal at a Glance 2. Commercial Building Code Green Amendments Proposal at a Glance 3: GB Amendment Options for Council 4. City Council Work Session Summary—January 12,2010 re:Green Building ProgramUpdate 5. City Council Work Session Summary—July 13, 2010 re: Green Building Program Update 6. Green Building Program Advisory Committee Membership 7. Residential Technical Review Advisory Committee Membership 8. Commercial Technical Review Advisory Committee Membership 9. Public Comments Summary 10. Powerpoint presentation ATTACHMENT Proposed Residential Code Green Building Amendments ( Prescriptive ) of 12/3/2010 Fort Collins # GB Practice Description * Intent Applicability Type** RESOURCE EFFICIENCY Construction waste • Submit recycling plan (who, what, where, how) before project begins Divert construction waste New: Yes 1 recycling • Implement recycling (non-landfill) for wood, metal, concrete and from landfill Addition: Yes New cardboard Alteration: No Windows, skylights, New: Yes Increased detailing regarding integration of fenestration with exterior Reduce potential for 2 doors: drainage plane exterior moisture damage Addition: Part Refine installation Alteration: No ENERGY EFFICIENCY More rigorous specifications for electric-heat homes (beyond 2009 International Residential Code (IRC) requirements): • Air sealing: 3.0 air changes per hour at 50 pascals (ACH50) Building envelope: New: Yes s thermal specifications (maximum) Save energy and reduce Addition Reinstate : Part for electric-heat homes • Attics: R-49 (minimum) peak electrical demand Alteration: No + Refine • Frame walls: R-20 cavity + R-5 sheathing (minimum) or equivalent • Crawl space walls: R-19 (minimum) • Windows: 0.30 U-factor (maximum) Set stage for energy- New: Yes 4 Basement windows: Basement windows with comparable performance to windows on main efficient, comfortable Addition: Part Refine thermal specifications living levels living space when Alteration: No basement is finished • Whole-building air leakage: 4.0 ACH50 maximum energy,Capture p gy, comfort, New: Yes s Air sealing : • Increased focus on effective sealing between house and attached durability and health Addition: Part Reinstate tight construction garage benefits Alteration: Part + Refine • Performance testing required Insulation installed to the Residential Energy Services Network (RESNET) Grade I standard Insulation : Install insulation so it New: Yes s installation Exceptions for which RESNET Grade II is acceptable: delivers rated energy Addition: Part Refine • Rim joists performance Alteration: Part • Exterior walls with continuous rigid insulating sheathing, R-5 minimum. Added requirements for permit application: Design heating and • Heating + cooling design load calculations include room-by-room cooling systems that Heating + cooling New: Yes loads satisfy comfort needs and 7 systems: Addition: Part Refine • Air-Conditioning, Heating, and Refrigeration Institute (AHRI) matched perform in accordance design evaporators, condensing units and furnaces (AHRI certificate required) with manufacturer Alteration: Part • Document key design parameters specifications Heating, ventilation, air Performance testing of heating, cooling and ventilation systems, New: Yes 8 conditioning (HVAC) aligned with Air Conditioning Contractors of America (ACCA) 5 "Quality Verify that HVAC systems Addition: Part Refine systems: Installation" procedures. Systems operating out of tolerance compared perform as designed + New commissioning with design specifications will be adjusted and re-tested until they pass. Alteration: Part WATER EFFICIENCY Toilets, showerheads and lavatory faucets must meet Environmental New: Yes 9 Water-efficient fixtures protection Agency (EPA) WaterSense® standards. Save water and energy Addition: Part New Alteration: Part INDOOR ENVIRONMENTAL QUALITY (IEQ) Atmospherically vented combustion appliances (furnaces, boilers, water heaters, fireplaces) must be placed outside the thermal boundary Eliminate potential health Safer combustion New: Yes of the house and pass combustion safety test. Performance testing and safety hazard of oA appliances : new required. combustion products Addition: Part New construction Alteration: No (This requirement may also be met with safer combustion appliances: spilling into house power-vented, sealed-combustion or direct-vent.) Safer combustion Atmospherically vented combustion appliances must pass combustion Reduce potential health New: No 10B appliances : existing safety test under "natural conditions." (Applies when combustion and safety hazard of Addition: Part New buildings appliances are replaced and when other changes are made to house combustion products Alteration: Yes that may affect pressure balance in combustion appliance zone.) spilling into house Interior materials meet maximum VOC emissions standards: • Sealants + adhesives Low-Volatile Organic • Resilient flooring Improve indoor air quality New: Yes 11 Compound (VOC) • Paints, stains, varnishes and other site-applied finishes for construction workers Addition: Part New • Structural wood panels, hardwood veneer plywood, particle board , materials and occupants Alteration: Part and fiber board • Prefabricated cabinetry • Insulation 1 ATTACHMENT Provide whole-house, controlled, mechanical ventilation system, New: Yes 12 Whole-house ventilation designed to meet ASHRAE 62.2 requirements. Improve indoor air quality Addition: No New Air handlers used to move ventilation air must be equipped with Alteration: No efficient blower motors. OUTDOOR ENVIRONMENTAL QUALITY (OEQ) Exterior lighting: Increase security New: Yes 13 fixture design Install "dark-sky friendly' exterior lighting fixtures Reduce light pollution and Addition: No New light trespass Alteration: No OPERATIONS + MAINTENANCE + EDUCATION Educate owners about New: Yes 14 Building owner their home and other education Provide operations and maintenance manual for building owner " choices the can Addition: Part New "green" y Alteration: Part make * Visit the City of Fort Collins Green Building Program web site (fcoov.com/gbp) for more information: • Fort Collins Building Code Green Amendments - context for this evolving proposal • Expanded descriptions of each proposed green building practice ** Classifies how the proposed amendment relates to the existing building code: New: not previously addressed in Fort Collins code Refine: already addressed in Fort Collins code; the amendment provides more detail or takes it further Reinstate: similar provision existed in the Fort Collins code prior to fall 2010 update. Optional Additional Green Building Practices (pending City Council direction) # GB Practice Description Intent RESOURCE EFFICIENCY Concept: Support sustainable A Certified wood Sustainable forestry-certified products for all tropical hardwoods and forestry practices most dimensional lumber Concept: educe resource footprint B House size Increase required efficiency in some relationship with increasing R larger homes conditioned floor area of ENERGY EFFICIENCY Building envelope: Concept: C thermal specifications Higher specifications for gas-heat homes beyond 2009 IRC Save energy for gas-heat homes requirements Concept: Renewable energy offsets at least X% of building energy use D Solar applications Possible alternative compliance options: Reduce conventional • Require a corresponding increase in energy efficiency energy use • Require participation (i.e. $$) in a community solar project to equal same level of offset 2 ATTACHMENT Proposed Commercial Code Green Building Amendments ( Prescriptive) 12/3/2010 F�t Collins # GB Practice Description* I Intent jApplicability RESOURCE EFFICIENCY Construction & Site ' Submit recycling plan (who, what, where , how) Divert waste from landfill . New: Yes • Implement recycling (non-landfill ) for wood , metal , concrete and Potential disposal cost Addition : Yes waste recycling cardboard savings Alteration : No ENERGY EFFICIENCY + CONSERVATION Energy Distribution Each electrical panel supplies only one of the following electricity use measurement and Provides means for New: Yes 2 types - Heating , Ventilation , and Air Conditioning ( HVAC) , Lighting , Addition : Part Design Requirements building operations , or miscellaneous . verification leading to Alteration : No potential energy savings Saves energy, improves Building Envelope: Air Require continuous air and thermal barrier per The American Society of occupant comfort, New: Yes 3 Heating , Refrigerating and Air-Conditioning Engineers (ASHRAE) improves building Addition : Yes Barrier standard 189 . 1 . Appendix B durability, reduces pest Alteration : No problems Building Envelope: Higher specifications for electric-heat buildings beyond 2009 Save energy, reduce peak New: Yes a electrically heated electrical demand , improve Addition : Yes buildings International Energy Conservation Code ( IECC) requirements occupant comfort Alteration : No Improves performance of Building Envelope: Stud cavity insulation installed to Residential Energy Services Network New: Yes 5 Installed insulation ( RESNET) Grade I standard . Additional standards for rigid and spray insulation - energy savings , Addition : Yes standards foam insulation . better occupant comfort, Alteration : Yes better building durability Control of loads in Lighting , switched outlets , and televisions will be controlled when guest Energy savings , operations New: Yes s Hotel/Motel guest rooms are unoccupied . HVAC set point will be relaxed by at least 5cF and maintenance savings Addition : Yes rooms when room is unoccupied . through increased equipment life Alteration : Yes Outdoor lighting o Electric energy savings , New: Yes controls Reduce outdoor lighting by 50 /0 2 hours after business closes CO2 reduction Addition : Part Alteration : No Energy assessments Energy assessments required prior to building alterations . No-cost Identify energy efficiency New: No s gy gy q p g y gy y Addition : No for alterations assessment provided by Fort Collins Utilities. opportunities Alteration : Yes WATER EFFICIENCY + CONSERVATION Maximum fixture flow New: Yes 9 rates See table ( based on Water Sense standard) Water savings Addition : Part Alteration : Part (continued on other side) 1 ATTACHMENT # GB Practice Description* Intent Applicability INDOOR ENVIRONMENTAL QUALITY (IEQ) Protect ducts from contamination during construction Avoid introducing New: Yes HVAC measure for Air handling system access & ability to clean and maintain contaminants into supply � o Addition : Yes Indoor Air Quality No friable materials in air plenums air and provide means for Alteration: Yes maintaining air quality. Flush out building contaminants by operating at maximum outside air for Remove pollutants New: Yes 11 Building flush-out a prescribed period of time based on ASHRAE 189. 1 , 10.3. 1 .4. Minimum generated from outgassing Addition : Part Outside Air setting allowed during Fort Collins Utilities Coincident Peak. of new materials Alteration: Part The following interior materials meet maximum VOC emissions standards : Low-Volatile Organic • Sealants + adhesives Improve indoor air quality New: Yes 12 Compound (VOC) • Resilient flooring for construction workers Addition : Part materials • Paints, stains , varnishes and other site-applied finishes and occupants Alteration : Part • Structural wood panels, hardwood veneer plywood , particle board , and fiber board Requirements for exterior-to-interior sound transmission , interior sound Improves occupant comfort New: Yes 13 Acoustical Control transmission , and HVAC sound levels . and by reducing noise Addition : Part disturbances Alteration : No COMMISSIONING / OPERATIONS + MAINTENANCE Provide Fundamental Commissioning per Leadership in Energy and Ensure that building New: Yes 14 Commissioning Environmental Design (LEED) definition with addition of commissioning systems are installed and Addition : Part building envelope materials and assemblies. operate per owner's intent Alteration: No *Visit the City of Fort Collins Green Building Program web site (www.fcciov. com/cibp) for more information : • Fort Collins Building Code Green Amendments - context for this evolving proposal • Expanded descriptions of each proposed green building practice, including information about how each is proposed to apply to existing buildings Optional Additional Green Building Practices # GB Practice Description Intent RESOURCE EFFICIENCY Concept: Support sustainable A Certified wood Sustainable forestry certified products for all tropical hardwoods and at forestry practices least 85% of dimensional lumber ENERGY EFFICIENCY Concept: Renewable energy offsets at least X% of building energy use a Solar applications Possible alternative compliance options : Reduce conventional energy use • Require a corresponding increase in energy efficiency • Require participation (i .e. $$) in a community solar project to equal same level of offset 2 ATTACHMENT GREEN AMENDMENTS—OPTIONS FOR COUNCIL CONSIDERATION Staff is asking City Council for direction on four potential green building practices which are designated as options rather than part of the base green amendments proposal. This is because each option is quite different in some way from the base package. Staff has not developed details around the options; they are presented as concepts. If the direction from Council is to move ahead on these options, the details will be developed for consideration of a green amendments ordinance in March 2011. OPTION A: CERTIFIED WOOD } Applicability Residential and commercial buildings Concept A two tiered approach which would require sustainable forestry-certified products for: • All tropical hardwoods,and • Most dimensional lumber. The two tiers described above could be implemented independently. Why an option? Unlike green building practices proposed in the base amendment package, there would be no direct local benefits of this practice. The primary benefits would be for the global ecosystem, most directly accrued by the forests and environments from which the timber is harvested. Additional information Certified wood practice rewarded in all of the major voluntary green building rating systems. Several organizations oversee certification systems that address sustainable forestry with varying degrees of rigor and comprehensiveness. Certified wood products are available at a cost premium. OPTION B: RENEWABLE ENERGY REQUIREMENT Applicability Residential and commercial buildings Concept Require an on-site solar energy system that offsets at least X%of building energy use Possible alternative compliance options: • Require a corresponding increase in energy efficiency • Require participation(i.e. $$) in a community solar project to equal same level of offset J 1 ATTACHMENT3 Why an option? Renewable energy systems tend to be a significantly more expensive approach to reducing fossil fuel use than other energy-efficient practices in the base proposal. Additional information Not all buildings can accommodate solar energy systems due to orientation, shading from trees and/or adjacent buildings, or architectural constraints related to the building's function. Alternatives are suggested to accommodate these situations. OPTION C: REQUIRE HIGHER PERFORMANCE FOR LARGER HOMES Applicability Residential buildings Concept Require increased resource-efficiency in relationship to increasing conditioned floor area. Examples include those described under Option B above: • Require an on-site solar energy system that offsets at least X% of building energy use. • Require a corresponding increase in energy efficiency. • Require participation(i.e. $$) in a community solar project to equal same level of offset. Why an option? This concept is expected to be quite controversial. Additional information All of the major voluntary green building rating systems, the newly released ENERGY STAR New Homes guidelines, and regulations in Boulder, Colorado and Santa Fe,New Mexico, include mandatory practices based on house size. Larger houses must meet more stringent energy-efficiency requirements or require renewable energy. The intent is to reduce the larger"resource footprint"that larger homes would have if they were built to identical standards as smaller homes. This concept was discussed with the Residential Technical Advisory Committee and briefly addressed in recent presentations to many City boards and commissions; stakeholders have strong views on the concept. OPTION D: HIGHER THERMAL SPECIFICATIONS FOR GAS-HEATED HOMES Applicability Residential buildings Concept Require natural gas heated homes to meet higher thermal specifications than those in the recently adopted 2009 model code. 2 ATTACHMENT Why an option? The base package of proposed green building practices puts more emphasis on installing components properly so that they delivered rated performance than on increasing the rated specifications. City Council may wish to also increase the thermal specification requirements. Prescriptive insulation requirements are expected to increase in the 2012 edition of the I-Codes. Additional information The base package includes a proposed requirement that electrically heated homes meet higher specifications for air tightness and insulation than those in the recently adopted 2009 model code. This is because electric resistance heat is about 2.5 times more expensive per delivered unit of energy than heat delivered from a natural gas furnace or boiler. For all homes, staff feels that the priority is to focus on installation details so that as-built performance of the building envelope matches rated performance(e.g. R-30 insulation is installed so that it delivers R-30 results); these basics should be addressed before requiring higher rated specifications. 3 ��t` of ATTACHMENT 4 oltins Memorandum DT: January 15, 2010 TO: Mayor and City Councilmembers TH: Darin Attebeny, City Manager Brian Janonis,Utilities Executive Director FR: Patty Bigner, Utilities Customer and Employee Relations Manager Doug Swartz, Utilities Energy Services Engineer Felix Lee, Utilities Green Building Codes Project Manager RE: Work Session Summary—January 12, 2010 re: Green Building Program Update On January 12, 2010, City Council held a Work Session to discuss a proposed Green Building Program. All Council Members were present except Councilmember Poppaw. Staff members making presentations and answering questions were Brian Janonis, Doug Swartz, John Phelan, Felix Lee, (Utilities); and Mike Gebo (CDNS). There was extensive discussion and many clarification questions regarding the Green Building Program. Each Council Member provided their individual perspective and feedback. Council generally is supportive of moving ahead with the proposed approach. The following issues were identified as important: • Integrated framework. Council supports the market transformation design of the proposed plan, balancing voluntary,market-driven,above-code elements to"pull"the top end of the market while a green building code"pushes"the bottom end. They feel there is merit in the concept of using a single framework as the basis for both the regulatory and reward elements of the Green Building Program. • Interdepartmental coordination. Council agrees that the integrated approach of the Green Building Program and the element addressing the removal of barriers from existing City codes/ policies/processes will be a positive step in strengthening interdepartmental collaboration and consistent green building support across City work areas. The City Manager recognizes the need for top management to support these efforts. • Accountability. Council supports the development of a substantive, results-oriented program with well-defined metrics that are tracked over time. • Economics.Council requests staff provide information on costs and benefits when a green building code proposal is brought to Council, including initial, life-cycle, individual and public costs and benefits. • Points-based rating system.There are varying perspectives among Council Members on pros and cons of a points-based rating system, such as the National Green Building StandardTm, as the basis for a green building code. Some feel that the flexibility of such an approach,allowing different paths to a given performance level, is a benefit while others are concerned about the 1 Frof ollins ATTACHMENT 4 potential to"game"the system and evade important features. All Council Members support staff moving ahead with a points-based system,carefully considering these concerns. • Local code amendments.Council Members discussed issues related to the potential number of amendments that may be necessary to reflect local conditions and community values. On further discussion,the consensus direction to staff is to proceed on code development, with local amendments based on documented need. • Existing buildings. Council wants clarifications about how a green building code would apply to existing buildings. • Timeline. Council supports the proposed timeline. They understand that the commercial/industrial (C/I)green building code development will lag the residential code,because the model C/I standards have not yet been published. Staff will work to bring a proposed CA code to Council on the same schedule as a residential code proposal. • Community engagement.Council directed that staff broadly engage the community in the development of the Green Building Program,reaching out well beyond the stakeholders who will be directly affected. Next Steps • Continue development of Green Building Program,with quarterly progress reports beginning March 31,2010. • Green Building Program update at Work Session on July 13,2010. • City Council consideration of the adoption of a green building code, first quarter 2011. • Provide incentives for projects Voluntary, significantly exceeding minimum market-driven, codes above-code • Recognize GB innovation+ success Provide education and training Regulation • Establish GB code •.Rese'arch`and ldoclumeritl local costs+:,benefits of,GB. ,_• D,,evelop;metncs nand tacking,system Foundation Revise City policies /codes/processes ao address'barriers ani 'jd conflicts related to G6 2 City of ATTACHMENT� Fort Collins Memorandum DATE: July 15,2010 TO: Mayor and City Council Members THRU: Darin Atteberry, City Manager Brian Janonis, Utilities Executive Director FROM: Patty Bigner,Utilities Customer and Employee Relations Manager Doug Swartz, Utilities Energy Services Engineer Felix Lee, Utilities Green Building Codes Project Manager RE: Work Session Summary—July 13,2010 re: Green Building Program Update On July 13,2010, City Council held a Work Session to discuss an update on the development of the Green Building Program. All Councilmembers were present. Staff members making presentations and answering questions were Utilities staff Patty Bigner, Doug Swartz, John Phelan, and Felix Lee. There was extensive discussion and many clarification questions regarding the Green Building Program. Each Councilmember provided their individual perspective and feedback. Council supports moving ahead with the approach proposed by Staff, with the exception of timeline. Major points of discussion were: • Integrated framework.Council supports the market transformation approach of the Green Building Program,balancing voluntary,market-driven, above-code elements to"pull'the top end of the market while a green building code"pushes"the bottom end. • Green building code.Council supports integrating mandatory green building practices into existing City regulations rather than establishing a standalone green building code. Councilmembers have varying perspectives on the scope of the green building code enhancements and degree of push they provide. • Costs and benefits.Council would like to see a costs and benefits analysis of the proposed green building code enhancements. The costs and benefits should be considered from a Triple Bottom Line perspective. • Resources. Council needs more specific information about the proposed elements of the Green Building Program,with estimated resource needs,before they can address resource availability. Additional resource requests should come through the Budgeting for Outcomes process. • Timeline. Council would like another Work Session on this topic in late 2010 and a final green building code proposal for consideration no later than the end of February 2011. City of ATTACHMENT Flirt Collins Next Steps • Continue development of Green Building Program,continuing quarterly progress reports. • Green Building Program update at Work Session on December 14, 2010. • City Council consideration of the adoption of green building code enhancements,First and Second Readings completed, first quarter 2011. 2 ATTACHMENT Green Building Program Advisory Committee Members Organization/Company Represent tive American Institute of Architects/Colorado North Fred Roberts Appraisal Institute/Colorado Chapter Marge Moore Community for Sustainable Energy Andrew Michler CSU-Institute for the Built Environment Brian Dunbar Fort Collins Board of Realtors tTodd Gilchrist Fort Collins Chamber of Commerce Ann Hutchinson Fort Collins Housing Authority Mike Salza Fort Collins Sustainability Group Andrew Michler International Facilities Management Association Matt Horner Northern CO Commercial Assoc. of Realtors Peter Kast/Joshua Guernsey Home Builders Association of Northern CO Bob Peterson Northern Colorado Renewable Energy Society John Fassler Poudre School District Mike S earnak Rocky Mountain Sustainable Living Association Kellie Falbo Sierra Club/Poudre Canyon Group Shane C Miller USGBC-Northern CO branch Bill Hofmann Individuals Everitt Companies David Everitt Sa e2 Bill Franzen Involved citizen Mark Wanger Boards and Commissions Affordable Housing Board Mike Sollenber er Air Quality Advisory Board Rich Fisher Building Review Board Alan Cram Commission on Disability Mike Devereaux Economic Advisory Commission Stu MacMillan Electric Board John Graham Landmark Preservation Commission Bud Frick Natural Resources Advisory Board Glen Colton Planning&Zoning Board Andy Smith Water Board Phil Phelan City Management Neighborhood & Building Services Steve Dush 1 Economic Development Mike Freeman City Manager's Office Helen Mi chelbrink Natural Resources John Stokes Fort Collins Utilities Patty Bigner Fort Collins Utilities - Light&Power Steve Catanach Fort Collins Utilities - Water Jon Haukaas Fort Collins Utilities - Water Kevin Gettig Advance Planning Joe Frank Operations Services Ken Mannon Neighborhood and Building Services Mike Gebo 2 ATTACHMENT 7 Residential Technical Review Advisory Committee Membership Member Company Expertise Jeff Schneider Armstead Construction Builder/new+remodel Builder/new+ Gil Paben Aspen Construction remodel, radon mitigation contractor Rob Sabin Aspen Homes of Colorado Builder/production homes Energy efficiency+ Alex Blackmer The Atmosphere Conservancy renewable energy, custom builder Chadrick Martinez Care Housing, Inc. Affordable housing developer and owner Dana McBride Dana McBride Custom Homes Architect and builder/ custom homes Michelle Jacobs Fort Collins Board of Realtors Real estate Bob Hand/John Sailer Habitat for Humanity Affordable housing builder Gordon Winner HighCraft Builders Remodel contractor Laura Barrett/ Green building Mark Benjamin Institute for the Built Environment education and consulting(students) Larry Buckendorf J&J Construction of Northern Colorado Developer and builder/ production homes Michael Bello Larkspur Homes, LLC Builder and project manager Rob Ross Merten Design Studio Project architect Neil Kaufman National Center for Craftsmanship Deconstruction and training Designer and builder/ Dennis Sovick Sovick Design Builders custom homes+ remodel Lara Williams The Green Team Real Estate Real estate James Mitchell The Group Real Estate Real estate Linda Ripley Vaught-Frye-Ripley Design Master planning+ landscape architecture Developer/landscape Terence Hoaglund Vignette Studio architect/designer/ builder 1 ATTACHMENT 8 Commercial Technical Review Advisory Committee Membership Member Company Expertise Aller Lingle Massey Architects Brad Massey PC Architect Steve Steinbicker Architecture West Architect Beaudin-Gauze Consulting Corey Rhodes Engineers Mechanical Engineer Rick Coen Bella Energy Solar Gino Cam ana Bellisimo Inc. Construction Management Angela Milewski BHA Design Landscape Desi n/LEED Josh Guernsey/Peter Kast Brinkman Partners Real Estate Doug Dohn Dohn Construction Construction Management Greg Fisher Fisher Architecture Architect Institute for the Built Josie Plant Environment LEED/Green Building Jeff Giles Nolte&Associates Pete Hall PSD Green Building/Operations Sandy Willison Starwood Construction M mt Construction Management HVAC Systems & Matt Horner Trane Controls/Facility Management Building Officials* Jurisdiction Representative Larimer County Tom Garton Safe Built Russ Weber City of Longmont Chris Allison City of Fort Collins Russell Hovland * Building Officials are invited to attend both residential and commercial TRAC meetings. 1 ATTACHMENT 9 Green Building Program (GBP)—Building Code Green Amendments (BCGA) Public Comments Summary 7/14/2010— 12/2/2010 Below is a summary of public comments from: 9/18/10 Sustainable Living Fair 10/26/10 Business Environmental Program Series "Greening the Fort" 1 1/10/10 . Landmark Preservation Commission 11/12/10 Downtown Development Authority 11/12/10 Planning& Zoning Board 11/15/10 Air Quality Advisory Board 11/17/10 Economic Advisory Committee 11/17/10 Green Building Program Community Open House 11/17/10 Natural Resources Advisory Board 11/18/10 Building Review Board 12/1/10 Electric Board 12/2/10 Affordable Housing Board Other general public comments to staff **Staff also will be meeting with the: 12/6/10 Water Board 12/10/10 Chamber of Commerce Legislative Committee Appraisals • Currently, local residential appraisers are not giving value to energy improvements on homes; some consider comparables with similar energy-saving features in houses sold, but experience is that most do not. Residential appraisals must conform to guidelines established by underwriters and currently the guidelines do not recognize the value of energy efficient or other `green' attributes. This ultimately affects the buyers' ability to borrow, permitted only to borrow on 80 percent of the `appraised' value which currently excludes the added value of energy-efficient and/or `green' features. • Would like to see the City take a leading role in educating the local lending and appraisal industries and promoting change to this process. • Commercial appraisers' process is different in that they include narrative analyses that illustrate specific attributes and their added value to the base cost of the building. • A homeowner who refinanced their home, with `green' features as upgrades, experienced lack of knowledge by the appraiser on the value of the upgrades in the home. Benefits • Be sure to consider the environment and triple-bottom-line benefits. 1 ATTACHMENT 9 Costs • Provide a Costs and Benefits Analysis of BCGA. • Specifics of costs to builders/developers to build in compliance with BCGA? • Concern that increased construction costs of BCGA drive builders and projects out of community. • Concern costs will make Fort Collins housing unaffordable. • Request for a broad-based assessment on return on investment(ROI) and utility savings. • Who will pay for any costs associated with additional inspections? Will that cost be passed to home owners through increased inspection fees or spread to all taxpayers? Why was a 1,600 sq. ft. ranch home with full basement chosen as the prototype sample home when the more typical starter home is multi-story and less expensive to build? Current economy • Concern about the current downtrend for building industry—very limited number of new projects and lenders not making construction loans (new regulations require lenders to hold 10%of loan value they sell on secondary market for accountability to loan originators). • Concern about added costs to comply with BCGA in a poor economy. • Concern about large amount of vacant retail space and impact of BCGA. Disclosure at point-of-sale • Is this like the radon ordinance? General • Supportive of the direction the City is headed with proposed green amendments. • Positive response to integrating amendments into existing codes. • No good builder will oppose more rigorous City inspections. • Will higher green standards for new homes decrease the market value of existing homes? Education and resources • Request that City provide ongoing education and resources for public. • Request that City provides resources for homeowners specifically via an Operations and Maintenance manual. • Request that City provide ongoing education to homeowners who want to renovate or build additions. • Ongoing education and training is a very important element once BCGA implemented. • City should provide BCGA guideline resources for construction industry professionals and public alike. • Importance of educating appraisal and lending industry professionals on the economic benefits of green building, especially as related to residential. 2 ATTACHMENT 9 Effective date • Timeline for implementation? • What is the last possible date a building permit can be obtained to comply with current codes, and not required to comply with BCA? • Consider an effective date past 2012 in light of poor building industry economy. • Supportive of reduction of energy consumption and impact of resources and elements of proposed BCGA; however, suggestion was made to strongly consider implications of additional costs in poor economy when establishing an effective date. Electric heat v gas heat on large projects • Develop disincentives for large projects using electric heat—creates a disconnect between goals of Climate Action Plan and energy-efficiency building codes. Existing buildings • Application to existing buildings? Goals of Climate Action, Energy and Water Conservation Plans • Concern about a proposed large multi-family project using all electric heat and how that it fits into City policies relating to energy conservation and green building goals. Historic Buildings • Application to historic buildings? • Application to fagades of downtown historic properties? Inspections/verification • Develop process for feedback from 3`d party inspectors to City staff so staff is aware of any issues. • Will current City inspectors be trained on new amendments and are they currently trained in multi-disciplines of inspections? Insured values v costs to rebuild in compliance with new codes • Owners need to be educated about insurance values and increased costs with rebuilding to new codes—noting experience with recent Boulder fire losses. Jurisdictional coordination • Suggest the City, Latimer County and other jurisdictions within county all adopt the same building codes and green amendments for consistency and ease for builders/developers. Performance testing • Who will be performance testing the equipment and systems? • How will HVAC commissioning affect issuance of a Certificate of Occupancy? 3 ATTACHMENT Provisions—proposed Certified wood • Which agency has been chosen as certifier? • Outreach needed to local building material suppliers to carry certified wood. Construction waste management and recycling • Positive experience with recycling construction wood waste, economically more feasible than landfill fees. • Negative experience recycling other construction waste due to noncompliance of subcontractors—even when signage is both in English and Spanish. • Issue with residents dumping trash in construction dumpsters. • Suggest to also considering a deconstruction plan requirement for projects over a set size tearing down an old structure for new construction in its place. The mandatory aspect would be development of a plan for educational purposes and a credible guideline if the owner decided to deconstruct—not mandating structures be deconstructed. The City could develop a form, or owner could use a 3`d party. House size • What about commercial building size regulations? • Why should there be any correlation with house size? • For a large lot that could be subdivided into two lots: On the total parcel an 8,000 square foot house could be built. On the subdivided parcel, two 4,000 square foot houses could be built. Does the first option require meeting stiffer requirements? What are they? Indoor lighting • Include an after-hours lighting requirement for businesses in addition to outdoor. Landscaping • New requirements integrated into Land Use Code? Ventilation • Include requirements for stairwells. VOCs • Is the City liable for new class of VOCs released into the indoor air other than what's prescribed in proposed BCGA? • Documentation via an affidavit needed for compliance with VOCs. Provisions—suggested additions • Suggest adding metering for multi-family projects. Staff Resources • What additional staff resources will be needed to administer BCGA? • Raise permit fees to pay for additional staff required to administer BCGA. • Consider additional staff time for documenting and preparing for an increase in appeals to the boards (most notably the Building Review Board). 4 ATTACHMENT Uniform Code for Building Conservation • Will this be integrated into BCGA? Unintended consequences of BCGA • Be careful of'unintended' consequences of the BCGA. Voluntary elements of the Green Building Program • Provide more information on the voluntary GBP elements, such as the response to the Home Efficiency Program and impact of the Home Energy Reports. 5 ATTACHMENT ' Green Building Program and Building Code Green Amendments City Council Work Session December 14 , 2010 otY or Purpose of Work Session • Review recommended packages of Building Code Green Amendments for residential and commercial sectors • Review implementation plans and continuing development of the Green Building ( GB ) Program • Receive City Council feedback and direction 2 �tr� Guidance Sought • Does Council support moving forward with the Building Code Green Amendments packages ( residential and commercial ) as recommended by staff? • For which of the Green Amendments options , if any , does Council want staff to develop detailed recommendations? • Does Council want to proceed with the Building Code Green Amendments project with the proposed March 2011 adoption timeline or a revised schedule? ctY o� �tt 3 Guidance Sougp • Assuming a version of these Building Code Green Amendments is adopted in 2011 : — Does Council support the staff recommended date for the code amendments to go into effect? — How will implementation resources for the Community Development and Neighborhood Services department be incorporated into the adoption process ? 4 Olt Presentation • Background and GB Program Elements • Building Code Green Amendments - Outcomes • 2010 GB Program Development • Building Code Green Amendments - Packages • Benefit Cost Analysis • Implementation Planning • Building Code Green Amendments — Options • Next Steps and Schedule C o �F� 5t Green Building = Opportunities • Site and lot development • Resource efficiency • Energy efficiency • Water efficiency • Indoor environmental quality • Outdoor environmental quality • Operations , maintenance , education 6 �trh Green Building Program Goal The goal of an ongoing Green Building Program is to increasingly align Fort Collins ' built environment with community goals of reduced carbon emissions , reduced energy use and reduced water use . otY or ollins .:r . :j Other Drivers for Green Building • Create better buildings — For people — Lower operations and maintenance costs — Higher future value • Avoid lost opportunities • Continue FC leadership role — Energy efficiency , clean energy , high - performance buildings � of Green Building Continuum Light More Green Green Green Fsusta E:Beyond Green Green Conventional 2009 ICC Amendments Green Net-zero Restorative Construction Codes Proposal Leaders Building city or ort CoUins f� 9 Green Amendments = Outcomes • The Green Amendments are the next steps towards making GB practices mainstream , by: — Establishing GB practices in code — Advancing the performance of buildings • Building Code Green Amendments — part of a larger picture — Implementation support — Above-code elements (recognition and incentives) — Regular code updates 10 rtfl Green Building Program Voluntary, market-driven , above-code • Provide incentives for projects significantly exceeding minimum codes • Recognize GB innovation + success • Provide education and training Regulation • Building Code Green Amendments • Research and document local Foundation costs + benefits of GB • Develop metrics and tracking system • Revise City policies / codes / processes to address barriers + conflicts related to GB 11 2010 Focus : Building Code • Incentives • Recognition Staff Technical • Education + training Review mmnllo Advisory • Green Amendments Committee • • + • Costs + benefits Consultant ' • Metrics and tracking ' • Barriers + conflicts 12 rtfl Building Code Green Amendments Baseline : CFC building code (2009 1 - Residential Commercial ( SF & MF ) ( MF > 3 stories ) New , additions , New , additions , alterations alterations C or �L 13tf� GB Program - Scope GB Program Land Use Code AdW ------- ---- ------- ---- 14 try- Community Engagement • Advisory Committee Meetings ( public) • Boards and Commissions • Web Site • Open house • Events and presentations oty o 15 � F�t�� Green Amendments - Documentation • Code proposal "at-a-glance " — Commercial — Residential • Green building practice summaries — Details for each line item — Applicability , cost , benefits , background , verification , etc . — fcgov . com/gbp 16 FL,_rl Green Amendments - Themes • Breadth of green building (TBL ) • Lost opportunities • Installed performance • Systems approach • Reasonable steps • Refine I -Codes • Residential and commercial alignment C o� F� 17 t Residential Green Amendments Recommended Package Mechanical systems performance Electricity • Heating/cooling • Thermal specs for system design electric-heat homes • HVAC commissioning Building envelope Other GB practices performance Indoor environment • Water-efficient fixtures • Tight construction • Tight construction • Construction waste • Insulation installation • Safer combustion recycling pp• Window installation appliances • "Dark-Sky" light fixtures • Low-VOC materials • Owner education • Controlled ventilation For 18 ��tf� Commercial Green Amendments Recommended Package Energy savings Mechanical systems • Thermal specs for performance electric-heat buildings • HVAC commissioning • Lodging guest room controls • Outdoor lighting controls Building envelope Other GB practices performance Indoor environment • Water-efficient fixtures • Tight construction • Low-VOC materials • Construction waste • Insulation installation • Building flush-out recycling • Commissioning • Sound transmission • Energy assessments for existing buildings • Owner education 19 opt Collins Benefit Cost Analysis • Scope of analysis — Individual — Building Sector — Community / Eco-system • Prototype projects • Project level BC results (quantitative ) • Community level BC results (quantitative ) • Community qualitative elements • Benefit cost analysis graphic — Review of categories of City 20 COST BENEFITS COMMUNITY / ECO-SYSTEM / BUILDING SECTOR \ 000 ( INDIVIDUAL \, ' I \ / COST BENEFITS COMMUNITY / ECO-SYSTEM _ environment 4000 / \ / BUILDING SECTOR �\ \ BEST TO LIVE / / \ / utilityand \ \ Economic masavingsintenance lobs ' health I INDIVIDUAL \ i �'ing i valuation ) \ occupant / carbon health and / \ p oav eat/ / reduction � \ \ building / sector \ investment/ \ i infrastructure 11 COST BENEFITS COMMUNITY / ECO-SYSTEM BUILDING SECTOR \ 000 training i � INDIVIDUAL I training �\ t \ ` � �O / ` \ $ $ Support \ / / materials \ \ industry ' / y` verification COST BENEFITS COMMUNITY / ECO-SYSTEM _ environment / BUILDING SECTOR ` \ BEST TO LIVI riE / Aityand \ \ Economic training maintenance jobs ' health I / INDIVIDUAL savings I �g training �\ s valuation I occupant / carbon \ \ health and produc[ivit� r / reduction \ \ � building 1 r Support sector \ ❑urt materials \ industry investment j infrastructure verification 12 Benefit Cost - Prototype Projects • Residential . 1 , 600 square foot ranch over full finished basement , $250 , 000 sales price , financed with a 6 % 30 year mortgage , $2 , 600 annual utility cost • Commercial . 15 , 000 square foot office building , 2 stories , $ 162 per square foot construction cost ($2 . 4M ) , $ 14 , 000 annual utility cost ctY o� 25 or �Lt,f� :V Benefit Cost — Project Results Residential Package • Initial cost increase — 1 % to 2 % of construction cost, or $2 , 500 to $5 , 000 — Monthly mortgage impact, $ 15 to $30 • Utility cost savings — 2 % to 7% , or $50 to $ 175 annually • Energy , water and carbon savings — 5% to 10 % 26 rtfl Benefit Cost — Project Results Commercial Package • Initial cost increase — 1 % to 4 % of construction cost, or $25 , 000 to $ 100 , 000 — Monthly mortgage impact, $ 180 to $600 • Utility cost savings — 13% to 25% , or $ 1 , 800 to $3 ,450 annually • Energy savings , 25% to 35% • Water savings (indoor) , 20% • Carbon savings , 15% to 30% Fr ctY lollinsa 27 � Benefit Cost — Community Results Quantitative • Use Benefit Cost Ratio to express quantitative results • Conservative assumptions based on national studies • Benefits — Building Valuation — Economic Health — Building Utility Savings — Eco-system (carbon ) — Occupant Health and Productivity • Costs — Initial Cost Increase — Verification (plan review and inspection ) — Training and Education 28 i `rt_fl Benefit Cost — Community Results Quantitative • Benefit Cost Ratio Results — Residential amendments package , 1 . 3 — Commercial amendments package , 1 . 6 — Combined amendments package , 1 . 5 City of ��t 29 ollin Benefit Cost — Community Results Qualitative Benefits • Community Leadership — Efficiency , clean energy , " best place to live" • Reduced Infrastructure Impacts — Electric and water systems , landfill • Other Environmental Benefits — Reduced resource use , "dark sky" cit 30 try Benefit Cost Analysis = Summary • One to four percent initial cost increases are within typical variance ranges for construction . • The initial cost increases provide both individual and community long -term benefits . • With conservative assumptions , analysis shows positive benefit-cost ratio F:otY o� t � 1 GB Amendments - Implementation Roles and Responsibilities • Collaborative implementation — Community Development and Neighborhood Services (CDNS) — Utilities Energy Services ( Utilities) • CDNS — Verification procedures — On-going code implementation (plan review, field inspection ) • Utilities — Training , education , support materials — Evaluation of results 32 rtfl GB Amendments — Implementation Resources • CDNS estimated time increases for plan review and field inspection — Residential , 8 hour increase per project — Commercial , 7 hour increase per project • CDNS staffing requirements to maintain Level of Service — 1 . 0 FTE Building Inspector and 0 . 5 FTE Plans Examiner • Utilities — Resources are included in 2011 /2012 budget for pre- implementation and GB program development ctY o� toll ns 33 GB Amendments — Implementation Recommended Schedule • Pre- Implementation Tasks — Training and education • Contractors , design professionals , City verification staff — Support Materials — Verification procedures — Hiring and training CDNS staff • Recommended effective date for GB amendments — January 1 , 2012 34 try Green Amendments = Options • See Agenda Item Summary Attachment 3 — Option description , applicability , rationale for option , additional information • Option A — Certified Wood • Option B — Renewable Energy Requirement • Option C - Require Higher Performance for Larger Homes • Option D — Higher Thermal Specifications for Gas- Heated Homes Wi 35t.f�- GB Program — Continuing Development • Collaborative development between CDNS and Utilities • Primary objectives — Implementation of green amendments — Development of above-code GB program elements — Consideration of Land-Use Code related GB practices — On-going code review cycles to align with International Codes updates 36 rtfl GB Amendments = Next Steps • Dec 14 , 2010 : Definitive direction from Council on recommended packages of green amendments and options • January and February 2011 — Develop ordinance language based on Council direction — Outreach to Boards and Commissions for recommendations • March 2011 : Council adoption City of ��t 37 ollin Building Code Green Amendments Summary • Recommended packages make sense as the next steps to mainstream GB practices . • Initial cost increases are within typical variance ranges for construction . • GB amendments provide net long -term benefits at both individual and community levels . • Additional City resources will be needed for implementation and verification . • The community- level benefits align with Fort Collins policy goals . 38 try Guidance Sought • Does Council support moving forward with the Building Code Green Amendments packages ( residential and commercial ) as recommended by staff? • For which of the Green Amendments options , if any, does Council want staff to develop detailed recommendations? • Does Council want to proceed with the Building Code Green Amendments project with the proposed March 2011 adoption timeline or a revised schedule? • Assuming a version of these Building Code Green Amendments is adopted in 2011 : • Does Council support the staff recommended date for the code amendments to go into effect? • How will implementation resources for the Community Development and Neighborhood Services department be incorporated into the adoption process? Ftitr 39 . Questions Cit- of Port Collins 40 1