HomeMy WebLinkAboutResponse to Constituent Letter - Mail Packet - 08/27/2024 - Letter from Mayor Jeni Arndt to Economic Advisory Board re: Building Performance Standards
Mayor
City Hall
300 LaPorte Ave.
PO Box 580
Fort Collins, CO 80522
970.416.2154
970.224.6107 - fax
fcgov.com
August 22, 2024
Economic Advisory Board
c/o Ashley Kailburn, Staff Liaison
PO Box 580
Fort Collins, CO 80522
Dear Chair Rojas, Vice-Chair Gray, and Board Members,
On behalf of City Council, thank you for providing us with the memorandum dated August 21,
2024 regarding Building Performance Standards (BPS).
We acknowledge that you recommend Council consider trade-offs in the decision-making
process such as ROI, co-benefits of BPS, transaction costs to the building owners and businesses,
the cost burden on businesses, business mobility, and revenue reliance. Thank you for
elaborating on your perspectives in the memo and also providing the addendum regarding the
lawsuits in Denver on Building Performance Standards.
Thank you for the expertise and perspectives that you bring to the Board and share with City
Council.
Best Regards,
Jeni Arndt
Mayor
/sek
cc: City Council Members
Kelly DiMartino, City Manager
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
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.