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HomeMy WebLinkAboutagenda.council.worksession.20160201 CITY COUNCIL WORK SESSION February 01, 2016 4:00 PM, City Council Chambers MEETING AGENDA I. Board Interviews - P&Z, HPC, Housing Authority II. Joint Work Session with ARC Advisory Board III. Energy Efficiency Code Changes Goal Update IV. Uphill Goal Update P1 City Council Board Interviews - Monday, February 1, 2016 4:00 pm – CITY COUNCIL MEETING ROOM Board Applicants Planning & Zoning 1 regular opening Keith Goode - reapplying Historic Preservation Commission 1 regular opening – 2 applicants Nora Berko - reapplying Rally Dupps Housing Authority 1 City Director Open Rally Dupps P2 I. P3 I. P4 I. P5 I. P6 I. P7 I. P8 I. P9 I. P10 I. P11 I. 1   MEMORANDUM TO: MAYOR AND CITY COUNCIL FROM: TIM ANDERSON, PARKS AND RECREATION RECREATION DIRECTOR JEFF ALDEN, PARKS AND RECREATION FINANCIAL ANALYST THRU: JEFF WOODS, PARKS AND RECREATION MANAGER DATE OF MEMO: JANUARY 25, 2016 MEETING DATE: FEBRUARY 1, 2016 RE: ASPEN RECREATION CENTER – ADDITION OF A NEW FITNESS CENTER REQUEST OF COUNCIL: The Aspen Recreation Center’s (ARC) Citizen Advisory Committee is requesting that Council support and fund the initial conceptual design of a fitness center addition to the ARC. Design should be completed through the City’s RFP process and proposals will include a detailed breakdown of each phase of the design process and all associated costs. This request is limited to only design cost. PREVIOUS COUNCIL ACTION: Council has supported and funded the actions, studies, and reports related to the addition of a fitness area at the ARC shown in [Figure 1]. Each report listed has demonstrated a need for additional fitness and Council has adopted these reports and their findings. The ARC Citizen’s Advisory Committee and staff met with Council at the ARC on May 18th, 2010 in a work session to discuss these studies. While Council saw the potential, no action was taken due to financial constraints. P12 II. 2   [Figure 1]   BACKGROUND: When the ARC was originally designed, the Mayor and Council did not want to include fitness in the facility due to concerns of competing with local private clubs. Upon opening the ARC in 2003, the ARC Citizen’s Advisory Committee heard from the community that fitness was needed. Based on those comments, staff retrofit two areas of the ARC to provide cardio, resistance equipment, and fitness class space. With the introduction of the new fitness areas, Recreation saw an immediate 24 percent increase in pass sales. Aspen has had a long standing tradition dating back to the 1800s of having a “Community Center” or local gathering place for citizens to congregate. The Armory, now City Hall, was such a place where community dances, local meetings, and socializing with friends and guests took place. Today, the Aspen Recreation Center is a modern version of such a “Community Center” and it is a place where people meet, families enjoy time together, athletic competitions happen, and where the community as a whole comes together over local hockey game. The ARC is also a place where guests that visit to feel at home in Aspen. The Aspen Recreation Center has found a unique niche within the community by serving locals, guests, and hosting special events and competitions. DISCUSSION: Each independent report referenced previously has advocated for the need of additional fitness space. The 2005 Aspen Recreation Center Business Plan used the first community survey related to recreation to show that a majority of citizens felt the addition of fitness was needed. 2004 •ARC retrofit to include fitness areas 2005 •1st Aspen Recreation Center Business Plan •Identified a need for additional fitness 2008 •Tim Hagman Architects Conceptual Plan and Study •Developed initial drawings and cost 2009 •Ballard*King Weight/Cardio Assessment •Showed need, developed operational costs  2010 •Council Work  Session at the ARC •Toured the proposed area and reviewed previous study findings 2015 •2nd Aspen Recreation Center Business Plan •Community Survey to show need, agreed with previous studies P13 II. 3   Following the adoption of the 2005 Business Plan by Council, funding was provided in 2008 to hire Tim Hagman Architects to develop a conceptual plan and feasibility study for a fitness center addition to the ARC. Hagman’s original drawings showed an additional 5,500 square feet to be located above the pool. These conceptual drawings showed a preferred size for weight and cardio equipment without increasing the building’s footprint. In 2009, taking the next step in Hagman’s plan, Council supported the hiring of consultant Ballard*King to accurately access the communities desires and needs for a fitness center addition. The Ballard*King study came up with the following size recommendation: “The size of weight/cardio spaces in public recreation centers have been steadily increasing over the last ten years. The absolute minimum size recommended is 3,000 square feet with a preferred size of 5,000 to 6,000 square feet and a high end of as much as 8,000 square feet or more.” Ballard*King also developed the first operational cost and revenue estimates (Attachment “B”). Ballard*King projected a positive net revenue for fitness that could improve Recreations recovery rate five to seven percent. Ballard*King noted, “Weight/cardio equipment areas consistently are one of the most highly utilized spaces in a public recreation center and generate the most revenue per square foot of any space in the building.” Operationally, based other recreation centers experience and consultants recommendations, the Citizen’s Advisory Committee agrees that additional operational costs will be covered by additional revenues. At a minimum fitness is breakeven. According to both Ballard*King and the 2015 Business Plan, the revenues generated in the operation of an improved fitness center will exceed expenditures, improving the Recreation Division’s subsidy. [Figure 2] Finally, the 2015 update to the Business Plan by PROS Consulting strongly advocated for additional fitness space. Their community survey showed that adding ‘weight training space and equipment’ was the highest priority for Aspen citizens, with 61 percent saying it was either ‘very important’ or ‘important’ [Figure 2]. PROS also reviewed the feasibility information from all prior studies and was in agreement with all recommendations and findings. PROS concluded, “It is recommended that if the Aspen City Council approves the project, additional feasibility needs to be conducted that includes the full cost of ownership over a 10-year period. The study needs to include repair, maintenance, and the lifecycle replacement of fitness equipment and P14 II. 4   facility systems.” PROS presented their findings to Council and Council was in general agreement with PROS’ overall findings. Council requested further follow up at a later date. FINANCIAL/BUDGET IMPACTS: Staff estimates initial design costs of up to $75,000; this would include public process, conceptual drawings, and identification of estimated construction costs at each phase. Pinpointing a total construction cost estimate is difficult without a complete understanding of the components in the current construction economy. The 2008 Hagman Architects study estimated a build cost of $3.5 Million. Thus, it is the ARC Citizen’s Advisory Committee’s request is to use this process to develop design plans for the facility with costs for each phase. ENVIRONMENTAL IMPACTS: While energy consumption will increase due to the additional square footage (about a six percent increase of the total current square footage), utilities may increase by approximately four percent. This is due to the mechanical systems serving this space being less sophisticated compared to the rest of the facility. RECOMMENDED ACTION: The ARC Citizen’s Advisory Committee is seeking approval to fund initial conceptual design of a fitness center to the ARC. Anticipated conceptual design cost estimates, including citizen’s public input, would cost up to $75,000. As requested above, proposals will include full design plans for the facility and a detailed breakdown of each phase of the design process and all associated costs. Part of the RFP agreement will include contractors acknowledging that Council and the City will move forward only as funding becomes available. This requirement will allow the design process to move forward as Council sees fit and as funding becomes available. Staff and the ARC Citizen’s Advisory Committee understand that there are many City constuction priorities and projects at this time. As a result, this request is limited to design. With a design and vision completed, the ARC Citizen’s Advisory Committee can seek private partnerships for funding. Additionally, when construction slows and funding available, plans will be available to advance construction. Thus, the ARC Citizen’s Advisory Committee’s recommended action is to approve up to $75,000 only for initial conceptual design of a fitness center to the ARC. ALTERNATIVES: If Council chooses not to fund design costs then no further action is needed. An alternative is to have the ARC Citizen’s Advisory Committee bring this request back in the future. P15 II. 5   PROPOSED MOTION: “I move to approve the ARC Citizen’s Advisory Committee request for funding in the amount of $75,000 to fund conceptual design process for the addition of a new fitness center at the Aspen Recreation Center (ARC).” ATTACHMENTS: Attachment “A” Conceptual Drawing Attachment “B” Estimated Operational Payback (Ballard*King report) CITY MANAGER COMMENTS: P16 II. 6  At t a c h m e n t “ A ” P17II. 7  At t a c h m e n t “ B ”   [A ] [ B ] [ C ] 20 1 3 B a l l a r d * K i n g Es t i m a t e Lo w H i g h [a ] F i t n e s s E x p e n s e s $9 0 , 0 0 0 $ 1 3 0 , 0 0 0 [b ] F i t n e s s R e v e n u e s $2 5 3 , 0 0 0 $ 3 6 0 , 0 0 0 [c ] F i t n e s s N e t R e v e n u e $ 1 6 3 , 0 0 0 $ 2 3 0 , 0 0 0 [d ] F i t n e s s R e c o v e r y R a t e 2 8 1 % 2 7 7 % [e ] T o t a l E x p e n s e s W i t h O u t F i t n e s s $4 , 2 6 6 , 3 1 3 $ 4 , 2 6 6 , 3 1 3 [f ] T o t a l R e v e n u e s W i t h O u t F i t n e s s $2 , 0 6 6 , 0 6 5 $ 2 , 0 6 6 , 0 6 5 [g ] N e t R e v e n u e W i t h O u t F i t n e s s - $ 2 , 2 0 0 , 2 4 7 - $ 2 , 2 0 0 , 2 4 7 [h ] R e c o v e r y R a t e W i t h O u t F i t n e s s 4 8 % 4 8 % [i ] T o t a l E x p e n s e s W i t h F i t n e s s $ 4 , 3 5 6 , 3 1 3 $ 4 , 3 9 6 , 3 1 3 [j ] T o t a l R e v e n u e s W i t h F i t n e s s $ 2 , 3 1 9 , 0 6 5 $ 2 , 4 2 6 , 0 6 5 [k ] N e t R e v e n u e W i t h F i t n e s s - $ 2 , 0 3 7 , 2 4 7 - $ 1 , 9 7 0 , 2 4 7 [l ] R e c o v e r y R a t e W i t h F i t n e s s 5 3 % 5 5 % [m ] I m p r o v e m e n t T o S u b s i d y $ 1 6 3 , 0 0 0 $ 2 3 0 , 0 0 0 [n ] I m p r o v e m e n t t o R e c o v e r y R a t e 5 % 7 % [o ] P e r c e n t I n c r e a s e t o R e v e n u e 1 2 % 1 7 % So u r c e s & N o t e s : So u r c e : C e l l s : [ B a ] t o [ C b ] f r o m 2 0 0 9 B a l l a r d * K i n g r e p o r t ' R E V I SE D A s p e n R e c r e a t i o n C e n t e r E x p a n s i o n R e p o r t . d o c ' , p a g e 4 o f 5 No t e : O n e x p e n s e c o s t s , B a l l a r d * K i n g s t a t e s , " W i t h t h e e x p a n s i o n o f t h e c e n t e r , i t i s p r o j e c t e d t h a t t h e r e w i l l b e a n i n c r e a s e i n o p e r a t i o n a l c o s t s t o c o v e r a d d i t i o n a l u t i l i t y c o s t s , e q u i p m e n t r e p a i r , s t a f f i n g ( p a r t - t i m e w e i g h t / c a r d i o a r e a s u p e r v i s o r ) , c u s t o d i a l / m a i n t en a n c e c o s t s , a s w e l l a s o t h e r m i s c . e x p e n s e s . " No t e : O n r e v e n u e e s t i m a t e s , B a l l a r d * K i n g s t a t e s , " W i t h t h e a d d i ti o n a l w e i g h t / c a r d i o s p a c e , t h e r e s h o u l d b e a s i g n i f i c a n t i n c r e as e i n o v e r a l l c e n t e r u s e d u e t o t h e a p p e a l o f a n e x p a n d e d f a c i l i t y , t h e i n c r e as i n g f e e s t o a c c e s s p r i v a t e c l u b s , a n d g r o w t h i n t h e g e n e r a l p opulation." No t e : F i n a l l y B a l l a r d * K i n g n o t e s : " T h e s e a r e g e n e r a l e s t i m a t e s on l y b a s e d o n b a s i c o p e r a t i o n s a n d f a c i l i t y i n f o r m a t i o n . Th e s e a r e r e l a t i v e l y c o n s e r v a t i v e n u m b e r s f o r r e v e n u e s . " So u r c e : C e l l s : [ B e ] t o [ C f ] f r o m 2 0 1 3 E d e n f i n a n c i a l d a t a No t e : S o u r c e d a t a i s h a r d c o d e d i n b l u e , s t a f f c a l c u l a t i o n s a r e s h o w n i n b l a c k P18II. Page 1 of 7 MEMORANDUM TO: Mayor and City Council FROM: Ashley Perl, Climate Action Manager, Canary Initiative THRU: CJ Oliver, Environmental Health and Sustainability Director DATE OF MEMO: January 29, 2016 MEETING DATE: February 1, 2016 RE: City Council Goal #8 – Energy Efficiency Codes and Programs REQUEST OF COUNCIL: This worksession is the first update from staff to City Council regarding City Council’s Top Ten Goal #8, related to energy efficiency. Staff requests feedback from the Council on the direction of the goal and future projects that will help achieve the goal. PREVIOUS COUNCIL ACTION: At City Council’s most recent annual retreat in 2015, the Mayor and City Council members set a goal to pursue energy efficiency-related code changes and complementary programs that will transform the energy use of buildings within the community. BACKGROUND: The Aspen community and the City of Aspen have a long history of environmental stewardship and the pursuit of an environmentally sustainable community. In today’s worksession, members of City Council will hear details on the history of energy efficiency codes and programing in Aspen. It is important to remember that these energy efficiency programs and codes are part of a larger commitment to environmental protection that is rooted deep in Aspen’s values and traditions. Aspen has not only been recognized for environmental protection measures occurring locally, but has also received awards for its role as a national and international leader, setting the standards for what is possible in other communities around the world. Leadership in Energy Efficiency: In the field of energy efficiency, Aspen has also spearheaded new and innovative approaches. This section of the memo is intended to remind staff, the public, and City Council members of where Aspen has been, so that our decisions for the future are informed and deliberate. Energy efficient building practices and retrofits are important because they influence utility bill savings, deliver environmental benefits, and improve occupant comfort, health, and safety. For these reasons and more, Aspen has chosen to increase the focus of efforts that increase the energy efficiency of all buildings as a Top Ten Goal through 2017. For the purpose of clarity, staff has divided this goal into two pieces: codes and programing. P19 III. Page 2 of 7 Codes refers to building codes, as well as land use codes. Programing refers to both required and voluntary programs that incentivize homeowners, renters, and commercial building owners and tenants to reduce energy consumption. History of EE Codes: Aspen has a history of leading the way and setting a high standard for energy efficiency in buildings. This work has been primarily led by the City of Aspen building department and the building codes and policies overseen by that department. Energy efficiency was first mentioned in the City of Aspen building codes in 1994, when the first green building code was passed and implemented. Aspen went on to enact numerous other iterations of this code and ‘above code’ programs, but it is important to note that the code adopted by Aspen in 1995 helped inform the International Energy Conservation Code that was eventually adopted, 14 years later, far behind Aspen. Building codes set the standard for how a building should perform, while policies that are considered ‘above code’ set a much higher example. In the case of the City of Aspen, the Renewable Energy Mitigation Program (REMP) is an aggressive and impactful ‘above code’ program. The REMP policy was designed to offset the energy and environmental impacts and greenhouse gas emissions produced by new homes and commercial buildings exceeding the square footage threshold and non-complying exterior snowmelt, pools and spa systems. The REMP program was enacted in 2000 for residential buildings and in 2008 for commercial buildings. If a homeowner or building owner chooses not to mitigate energy use onsite through options like geothermal or solar, fees are collected and given back to the community in the form of grants that allow other homeowners and businesses to reduce energy use and increase energy efficiency. REMP has been recognized around the world for its impact and design. It is important to note that most well-known above code programs, such as LEED or Passive House certifications, are voluntary and thus only reach a specific, interested population. REMP on the other hand is mandatory for noncompliant buildings. REMP is the first energy mitigation program of its kind and has received accolades from the Colorado Department of Public Health and Environment and the Harvard University Ash Institute for Democratic Governance and Innovation. Attachment A provides a full list of communities that have adopted REMP, following Aspen’s lead. Because not all development goes through a land use review process, energy efficiency requirements have been purposely located within the city’s building codes, rather than the land use code. Many projects that are subject to a land use review are required to indicate how they will develop as energy efficiently as possible, but the real teeth come through the building codes. History of EE Programs: While codes and policies are an effective way to change behavior and have led to significant energy savings and avoided energy costs, it is important to pair codes and policies with incentive- based programs that provide resources to businesses and residents. Pairing codes and programs together incentivizes community members to both comply with the rules, and also to strive for P20 III. Page 3 of 7 further action through the resources and added incentives made available to them through energy efficiency programming. Aspen residents and businesses have access to programs that provide technical expertise, subsidized energy assessments, rebates, and grants for renewable energy and energy efficiency improvements. The history of these programs is outlined in Attachment B. Over the last twenty-plus years, CORE and local utilities and governments have been a source of energy efficiency expertise in our region and have helped thousands of community members save energy and improve their quality of life. DISCUSSION: With the history noted above, City Council and the community are now in a better position to make decisions that will help Aspen to continue to lead the way in energy efficiency. Again, the discussion has been split between codes and programing. Future of EE Codes: The above code programs mentioned above, including REMP, continue to this day. Aspen’s original energy conservation code has been continually advanced to enhance the efficiency of our buildings. With every updated building code, efficiency improves in Aspen. To continue transforming the community’s energy use, the 2015 International Energy Conservation Code building code will be unveiled later this spring, with requirements for approximately 15% higher efficiency in residential and commercial buildings. Energy Benchmarking: Building and land use codes are important and impactful, but the impact only extends to new and remodeled buildings in the community. To increase energy efficiency in existing buildings in Aspen, additional policies are needed. To fill this need, staff suggests City Council consider required energy benchmarking for commercial buildings. Benchmarking Defined: If the City of Aspen were to pursue a benchmarking program, the City would enact an ordinance requiring buildings of a certain type and size to track their annual gas and electric usage and report that usage using an online tool. Benchmarking empowers owners, tenants, and governments to measure how their buildings use energy and identify opportunities to make smart, economic improvements that save energy and money. Building managers enter monthly natural gas and electricity data into Portfolio Manager, a free online software developed by the EPA. Information is then sent back to managers so that they can compare energy use with buildings of similar size, year, and use in the US, creating the potential for sector-specific improvement and savings. The City of Aspen can then use data to better inform programs and provide specific resources to meet the needs of building managers. Why Benchmark? Thoughtful research has been put into this staff recommendation, beginning in 2014 when City Council was introduced to the concept of energy benchmarking at a worksession with the National Renewable Energy Lab (NREL). NREL was hired by the City of Aspen to evaluate the P21 III. Page 4 of 7 best ways for Aspen Electric to achieve 100% renewable electricity, a goal which has since been achieved. In addition to evaluating Aspen’s options for procuring more renewable energy, NREL recognized that no amount of renewable energy is sufficient unless it is paired with an aggressive approach to increasing energy efficiency. At the time, NREL stated that in other cities with benchmarking ordinances, the building owners and tenants were experiencing a 2.4% annual savings, simply by increasing awareness of their energy use. Energy benchmarking, although a new idea in Aspen, has been tested by other communities, both in the US and across the globe. Attachment C shows a list of cities in the US and countries that have adopted an energy benchmarking program. With these cities taking the lead, energy benchmarking has become a best practice among environmentally sustainable cities like Aspen. Aspen is working towards an adopted goal of reducing greenhouse gas emissions by 80% by the year 2050, and a short-term goal of 30% by 2020. Half of Aspen’s current greenhouse gas emissions come from homes and businesses in the community. The remaining emissions come from the airport, the landfill and transportation, showing very clearly that Aspen must act now to reduce energy in our buildings to have any hope of achieving our climate action goals. For these reasons and more, it is time for Aspen to pursue an energy benchmarking program. To understand the impact that an ordinance like this could have on the community, staff has met with representatives from the community, including real estate agents and commercial building owners. General reactions to the idea were positive, with all agreeing that competition has the potential to lead to action and could be healthy for the community. It was recommended that the City pursue a phased approach, possibly starting with public buildings in the first year and then requiring that private buildings comply in later years. There were also requests for a test case to show business owners what to expect and what benefits they would receive. Staff also received feedback that resources would be needed to help building managers use the online tracking tool. Business owners noted that utility bills are a significant cost to tenants, but still do not receive adequate attention or prioritization. An energy benchmarking program could incentivize building managers to give needed attention to the details of their energy use and take action to reduce energy and save money. Managers are already aware of how energy efficiency can positively affect the comfort and satisfaction of guests and said they would appreciate additional motivation and resources to improve energy efficiency. Prior to returning to City Council with a more thorough recommendation for Aspen’s benchmarking program, further and significant research is needed, and at this time, staff is requesting permission to conduct this research and community outreach. A short list of items that still need to be researched and considered include: the role of historic buildings, the size and type thresholds, the role of water tracking, the process and approach, incentives available, and a timeline of a phased approach. To summarize the code improvements, staff is proposing two actions to move this City Council goal forward in 2016: - Research and present a draft benchmarking program to City Council for comments - Present the 2015 International Energy Conservation Code building code to City Council for approval P22 III. Page 5 of 7 Future EE Programing: To achieve the end result that is desired by City Council’s goal, staff will continue to deliver and support existing energy efficiency programs described above, and also proposes a new program that focuses on the affordable housing sector. Aspen Energy Challenge: Aspen Energy Challenge is a program that started in 2015 and will run through the end of 2016. The Aspen Energy Challenge is a collaboration between the City of Aspen, CORE, Holy Cross Energy, and SourceGas to lead our community’s effort to win the $5,000,000 Georgetown University Energy Prize. Aspen is one of fifty communities across the nation competing from 2015 through 2016 to save the most electricity and natural gas in our homes, schools and municipal buildings through innovative, replicable, and equitable approaches. To bolster Aspen’s effort in the competition, the Aspen Energy Challenge team has developed programs designed to meet the energy efficiency needs of individual community segments, and to engage the community at large in specific energy efficiency practices. In addition to focusing energy efficiency programming on the residential sector, the City of Aspen and CORE continue to offer incentives and rebates to commercial properties. Attachments D and E provide a full listing of rebates available in 2016. The programs highlighted here will continue through 2016, with added impact, and will make funds available to the community for energy improvements. One sector of the community that holds the potential for significant benefits from energy efficiency improvements is the affordable housing sector. To date, there has not been programming aimed specifically at improving energy efficiency in Aspen’s affordable housing stock. The full details of this new program will be presented at a joint worksession of the City Council and the Board of County Commissioners on February 16th. At that time, the local governing bodies will have the opportunity to provide feedback on the program design. For the purpose of today’s discussion, basics of the program are explained below. Affordable Housing Focus: Staff proposes the implementation of a Phase 1, with Phase 1a and Phase 1b portions. These phases of the program will deliver energy efficiency improvements to affordable housing rental units owned and/or managed by the Affordable Housing Office, as well as Burlingame seasonal rentals, for a total of 447 units, or 21%, of the total 2163 affordable housing units in Aspen. Phase 1a will address energy efficiency upgrades at Marolt Seasonal Housing, Burlingame Seasonal Housing, and Truscott Housing. Phase 1b will address energy efficiency upgrades at Smuggler Mountain Apartments and the Aspen Country Inn. In December 2015, the board of directors of the Community Office for Resource Efficiency (CORE) passed a motion to approve a ‘supplemental budget of $500,000 from the REMP fund to support the Aspen Energy Challenge, specifically in improving energy efficiency in affordable housing in the upper valley, starting with rentals, as phase one of this program.’ Funding from Energy Outreach Colorado (through SourceGas and Holy Cross Energy) and additional local utility rebates will also be pursued. The proposed timeline includes culmination of Phase 1a work by August 2016, and culmination of Phase 1b work by December 2016. With approval from the Board of County P23 III. Page 6 of 7 Commissioners and the Aspen City Council, CORE and City of Aspen staff will be able to accomplish a program that will yield significant energy savings for those community members living in rented affordable housing. To summarize the programming improvements, staff is proposing three actions to move this City Council goal forward in 2016: - Request REMP funding be dedicated to an Affordable Housing efficiency program - Continue to expand and improve upon the Aspen Energy Challenge program, aimed at residential buildings - Support existing commercial rebates and incentives, including the Small Lodge Preservation Program Goal Status and Future Meetings: In addition to pursuing the codes and programming discussed above, the team of staff dedicated to this City Council goal will research other programs and codes and present a recommendation to City Council in mid-2016. This BYY City Council goal is on-schedule. The anticipated completion of the goal is the end of 2016. FINANCIAL/BUDGET IMPACTS: The effort to benchmark the energy of buildings and update the building code will not require additional funding. However, additional efforts to expand the Aspen Energy Challenge may require additional funding. Staff will have further conversations with partners to identify funding options, and will look at existing department budgets to understand what level of expansion of the Aspen Energy Challenge is possible. If sufficient funds are not found, staff may return to City Council to request supplemental funding. This supplemental funding request would allow the Canary Initiative to continue to provide the current standard of service and rebates to commercial and residential customers while at the same time, expanding programming and incentives in specific sectors of the community that are essential to the success of the Aspen Energy Challenge. ENVIRONMENTAL IMPACTS: Energy efficiency improvements to existing and new buildings could impact Aspen’s local environment significantly as well as lead to greenhouse gas emission reductions that would help Aspen meet the long term climate goals of the community. As shown by City Council’s Environmental Sustainability Dashboard, it is a critical measure of success that the ‘Aspen community effectively manage its energy needs while minimizing adverse environmental impacts’. With a focus on new buildings as well as existing buildings in both the residential and commercial sectors, Aspen has a real opportunity to continue being a leader in environmental sustainability and energy efficiency. RECOMMENDED ACTION: Staff recommends City Council and the Mayor give staff permission to further research and pursue an energy benchmarking ordinance. ALTERNATIVES: City Council and the Mayor may choose not to support an energy benchmarking ordinance and expanded energy efficiency programming and codes. Without any type of further codes and programming it will be challenging to reach City Council’s goal of P24 III. Page 7 of 7 ‘transforming the energy use of buildings in the community.’ City Council may choose to recommend that staff pursue other types of codes and programs to meet this goal. ATTACHMENTS: Attachment A: List of communities with policies similar to REMP Attachment B: History of EE Programming in Aspen Attachment C: List of Cities with Benchmarking Policies + Maps Attachment D: Residential rebates available in 2016 Attachment E: Commercial rebates available in 2016 P25 III. Attachment A: Communities with Similar Policies to REMP Communities with Similar Policies to REMPCommunities with Similar Policies to REMP P26 III. Attachment B: History of EE Programming in Aspen • 1970’s: Holy Cross Energy offers complimentary energy assessments to members • 1991: Aspen Mayor Bill Stirling launches the Energy 2000 Committee, the precursor entity to CORE • 1994: Local governments, utilities and citizens contribute to the founding of CORE • 1995: The City of Aspen and Holy Cross Energy receive an award from the Western Area Power Administration for creating CORE • 1999: The Solar Pioneers Program kicks off: CORE provides rebates for solar, the first of its kind in the nation • 2004: Holy Cross Energy WE CARE (With Efficiency, Conservation, and Renewable Energy, we can make a world of difference) program created, including energy efficiency rebates • 2006: City of Aspen Utilities Efficiency Manager position created, City of Aspen residential energy efficiency rebates offered • 2007: City of Aspen commercial rebates offered • 2007: Rocky Mountain Utility Efficiency Exchange founded, a networking and professional development conference for energy efficiency and renewable energy staff representatives of energy utilities serving Colorado and neighboring states, hosted in Aspen. • 2008: CORE administers City of Aspen, Holy Cross Energy, and Source Gas rebates, Aspen residents can complete one application to receive funds from all entities • 2009: Regional workforce development support from CORE and utilities • 2009: Home energy assessments available throughout Aspen Urban Growth Boundary – a $400 value subsidized to $100 to the resident, providing installed quick-fix efficiency upgrades and recommendations for further improvements • 2009: In depth energy assessments and efficiency upgrades in City of Aspen buildings • 2009: SourceGas energy efficiency programs in Colorado launched – rebates now available to Aspen residents and businesses from CORE and all local utilities Attachment D lists the residential rebates available in Aspen in 2016 Attachment E lists the commercial rebates available to Aspen Electric customers 2016 • 2010: Energy Smart Colorado created in Pitkin, Gunnison and Eagle counties with $4.9 Department of Energy grant • 2013: Online energy use tracker available to Aspen Electric customers • 2013: Holy Cross Energy 5 year energy efficiency plan implemented, with a goal of saving 2.5% of forecast retail sales in 2017 P27 III. • 2014: Energy Smart Colorado grows from three counties to six (Pitkin, Eagle, Gunnison, Lake, Summit, Garfield) • 2014: Energy Smart Colorado partners with Colorado Natural Gas, Atmos Energy and SourceGas to administer the Excess is Out program, making home energy assessments available statewide • 2014: Recommendations for future City of Aspen efficiency programs from National Renewable Energy Laboratory (NREL) • 2014: Aspen accepted into Georgetown University Energy Prize (GUEP) • 2015: Aspen Energy Challenge launched by City of Aspen, CORE, and local utilities to lead Aspen’s effort in the GUEP • 2015: City of Aspen and CORE’s Small Lodges Energy Efficiency Program provides technical expertise and grant funds to small lodges for efficiency improvements • 2015: Aspen ranked 3rd of 50 in interim GUEP rankings P28 III. Attachment C: Benchmarking on a Global China Brazil Australia Finland Sweden Norway Estonia Latvia Lithuania Poland Denmark Countries Benchmarking on a Global and US Germany Netherlands Belgium Switzerland UK Ireland Czech Republic Slovakia Austria Hungary Slovenia Romania Bulgaria Greece Cyprus Italy Spain Portugal Luxembourg Malta Countries with Benchmarking Ordinances and US Scale Romania Bulgaria Greece Cyprus Italy Spain Portugal Luxembourg Malta P29 III. Location Washington DC Austin, TX Washington State New York, NY Seattle, WA San Francisco, CA Minneapolis, MN Boston, MA Philadelphia, PA Chicago, IL Montgomery County, MD Kansas City, MO Cambridge, MA California Berkeley, CA Portland, OR Atlanta, GA Boulder, CO U.S. Jurisdictions with Benchmarking Ordinances Location Date Passed Washington DC Jul-08 Austin, TX Nov-08 Washington State May-09 New York, NY Dec-09 Seattle, WA Jan- 10 San Francisco, CA Feb-11 Minneapolis, MN Jan-13 Boston, MA Feb-13 Philadelphia, PA Jun-13 Chicago, IL Sep-13 Montgomery County, MD May- 14 Kansas City, MO Jun-14 Cambridge, MA Jul-14 California Sep-14 Berkeley, CA Mar-15 Portland, OR May- 15 Atlanta, GA Jul- 15 Boulder, CO Oct-15 U.S. Jurisdictions with Benchmarking Ordinances P30 III. P31 III. City of Aspen Utilities RenewAbles wAteR eleCtRiC RECEIVE UP TO $5,000 TO INCREASE ENERGY EFFICIENCY IN YOUR FOOD SERVICE OPERATION We Can Help The City of Aspen Utilities Department wants to help our customers save money and increase comfort, reduce Aspen’s carbon footprint, and maintain our utility’s reliable infrastructure. Three Simple Steps to Saving Energy & Money Contact our local partner, Energy Smart Colorado EnergySmartColorado.com 970.925.9775 Get a Site Visit & Energy Coaching An energy site-visit is a free walk through in your business with an Energy Smart teammember, including: - An examination of your business’s lighting - A brief evaluation of your equipment and mechanical systems - Follow up materialsto outline the next steps to start saving energy - Complimentary energy coaching to develop a plan of action to fit your unique needs and long term goals Take Action & Save After the walk through, energy coaches will help you implement the projects that fit your budget - Finding qualified contractors - Securing the best rebates and incentives - Applying for loans and other financing - Tracking your savings as you make improvements Major Sources of Food Service Energy Cost • Food Preparation: 35% • Heating, Ventilation & Cooling (HVAC): 28% • Sanitation: 18% • Lighting: 13% • Refrigeration: 6% Opportunities for Savings • Cooking Appliances • HVAC and Building Envelope Retrofits • Water and Waste Management • Lighting Retrofits • Refrigeration Systems and Ice Machines Your Partners in Energy Efficiency Take Action P32 III. “We even installed LEDs on our patio!” -Brad Smith, manager Local Case Study: Red Onion Energy Efficiency Rebates One application gets you 50% of project cost up to $5,000 between City of Aspen and Energy Smart Lighting LEDs, CFLs, Fluorescent Tube Upgrades, Occupancy Sensors and Controls Office Equipment Server Consolidations, Energy Star Servers, Energy Star Vending Machines, Network Computer Power Management Software Building Envelope Air Sealing, Insulation, Energy Efficient Windows and Doors, Window Film, Window Re Glazing Heating and Cooling (HVAC) Controls, Re-Commissioning, Hot Water Boilers, Roof Top AC Units, Split AC Systems, Furnaces, Entry Door Air Curtains, Evaporative Cooling, Direct Outside Air Exchanger Water Use Equipment Low Flow Toilets, Low Flow Showerheads, Low Flow Fixtures, Washing Machines, Waterless Urinals, Graywater Systems, Irrigation Systems Controls Food and Drink Equipment • Energy Star Appliances: Ice Machines, Dishwashers, Refrigerators and Freezers, Hot Food Holding Cabinets, Steam Cookers, Fryers, Griddles, Convection Ovens • Refrigerator and Freezer Door Gaskets, Strip Curtains, Open or Reach In Display Cases, Auto Closers for Walk In and Reach In Doors, Rotary Type VFD Compressors, No Loss Air Drains, VFD Motors • Evaporator Fan EC Motors, Proper Hood Balancing Other Measures Electric Outlet Occupancy Sensors, Energy Monitoring Equipment, Sub Metering Equipment for Tenant Spaces Additional Rebates Solar PV Installation City of Aspen offers $1 per installed watt, up to $3,000 (Energy Smart rebate also available) Ground Source Heat Pump City of Aspen offers 25% of project cost up to $3,000 Energy Assessment City of Aspen & Energy Smart offer a combined 50% of project cost, up to $2,000 Re-Commissioning City of Aspen offers 50% of project cost, up to $1,000 • Monthly Electric Savings: $86.21 • Reduction in Monthly Electric Bill: 49% • LED Lighting Retrofit • Project Cost: $2,800 • Rebate Received: $700 • Pay Back Period: 24 months • Bulb Lifetime: 25,000 hours • Return On Investment (over bulb lifetime): 242% • Lifetime Greenhouse Gas Reduction: 49,732 lbs CO2e P33 III. Make your home Energy Smart. Call us today! 3 EASY STEPS TO A SAFE + COMFORTABLE + EFFICIENT HOME A low-interest loan can help make your energy improvements a reality. Sign up today! • Rebates available in addition to fi nancing! • $1000-$25,000 loan amount • 5, 7 or 10 Year loan terms Holy Cross Energy and the City of Aspen also have fi nancing available. ROARING FORK VALLEY GUIDE TO ENERGY EFFICIENCYFINANCING Loans Repay with Utility Savings 1 2 3 Get an Assessment A $400 value for only $100 cost, the Home Energy Assessment includes: • Testing for carbon monoxide and radon • Blower door analysis and infrared imaging to identify air leaks • $100 worth of on-the-spot energy installations including effi cient bulbs and pipe wrap • List of recommended improvements Get Advice After your assessment, we will help you implement projects that fi t your budget. Our Energy Advisers can assist with: • Finding contractors • Securing rebates and incentives • Applying for loans and fi nancing • Tracking your savings Get Rebates We have rebates available to help with all your energy upgrades. See backside for more. It’s So Easy. Sign Up Today! Visit www.energysmartcolorado.com Energy Smartt/CORE rebates are funded by the REMP program of Pitkin CountyThe blower door analysis identifi es air leakage and inadequate insulation. (970) 925-9775 ext 502 for your Pitkin County Energy Resource Center (970) 704-9200 for your Garfi eld County Energy Resource Center Visit: www.energysmartcolorado.com MAKING ENERGY IMPROVEMENTS SIMPLE AND AFFORDABLE RENEWABLES WATER ELECTRIC UTILITY BILLING UTILITIES THE CITY OF ASPEN P 3 4 I I I . EFFICIENCY MEASURE ENERGY SMART/CORE (Aspen » Glenwood Springs) HOLY CROSS ENERGY GLENWOOD SPRINGS ELECTRIC SOURCEGAS CITY OF ASPEN ELECTRIC XCEL ENERGY Air Sealing 25% up to $500*30% up to $400 (elect. only) 25% up to $500 (up to $1,000 for elect.) 30% up to $300**25% up to $500 (elect. only)* Insulation 25% up to $500*30% up to $700 (elect. only) 25% up to $500 (up to $1,000 for elect.) 30% up to $300**25% up to $500 (elect. only)*30% up to $500 Duct Sealing & Insulation 25% up to $500* Windows 25% up to $1,000*$2/sq. ft. up to $600 (elect. only) 25% up to $500 (elect. only)* Toilet 50% up to $75/toilet Clothes Washer $75 Dishwasher $50 Refrigerator Rebate & Recycling $100 $75 for recycling $100 $100 $50 for recycling (elect. only) Programmable Thermostat 25% up to $500 $20 - $50 $50 (elect. only)$25 25% up to $100 $50/smart thermostat Gas Furnace 25% up to $500 25% up to $500 (elect. only) $300 + $50 for proper sizing** $120 (gas only) Gas Boiler 25% up to $500 $100 - $300 + $50 for proper sizing** Boiler/Furnace Maint. & Tune Up 25% up to $500 $40 (furnace only) Air Conditioner $500 - $1,150 (elect. only) Evaporative Cooler (Swamp Cooler)$150 25% up to $500 $200 - $1,200 House Fan/Ventilation 25% up to $500 Ductless Heat Pump (Mini-Split)25% up to $500 $650 Indirect Water Heater 25% up to $500 Tankless Water Heater 25% up to $500 $300 $100 (gas only) High Efficiency Tank Heater 25% up to $500 25% up to $100 (elect. only)$70 (gas only) Electric Heat Pump Water Heater 25% up to $500 30% up to $300 (elect. only) 25% up to $500 25% up to $500 (elect. only)$450 (elect. only) Solar Thermal / Solar Hot Water $1,500/panel up to $3,000 $20/1,000 BTU up to $3,000 (elect. only) Solar Photovoltaic (PV)$1/watt up to 3 kW $0.20 - 0.75/watt up to 25 kW $0.75/watt up to 6 kW $1/watt up to 3 kW Solar Rewards Program Microhydro 25% up to $3,000 Ground Source Heat Pump (Geothermal) 25% up to $3,000 25% up to $3,000 $300/ton up to $1,500 Lighting 25% up to $500 50% up to $5/LED 50% up to $200 25% up to $500 Discounted LEDs & CFLs Heat Tape Controls 25% up to $500 50% up to $100 25% up to $200 25% up to $200 Other Controls 25% up to $500 25% up to $2,500 Prescriptive & custom rebates available Custom rebates max. 25% up to $5,000 25% up to $2,500 REBATES ARE CONTINGENT UPON ELIGIBILITY AND CRITERIA Please consult each entity’s website to learn if your home improvement project qualifies. Call our Energy Advisers at (970) 925-9775 to find out more. *Indicates an Energy Smart Home Energy Assessment is required for eligibility. Call (970) 925-9775 to sign up. **Extra $100 available if a Home Energy Assessment has been performed. For Glenwood Springs Electric rebates, administered by CLEER, visit www.garfieldcleanenergy.org or call (970) 704-9200. Rebates based on electrical savings. HE A T I N G & C O O L I N G AP P L I A N C E S HO T W A T E R EL E C T R I C I T Y COMMERCIAL REBATES MULTI-FAMILY REBATES HO M E E N V E L O P E RE N E W A B L E rev. 1.5.16 Rebates are available from Energy Smart Colorado for up to $10,000 for multi-family units and HOAs. Please visit www.EnergySmartColorado.com or give us a call to discuss your project ideas. P 3 5 I I I . MEMORANDUM TO: Mayor and City Council FROM: Jessica Garrow, Long Range Planner Barry Crook, Assistant City Manager Don Taylor, Finance Director Pete Strecker, Assistant Finance Director Hillary Seminick, Planner MEETING DATE: February 1, 2016 RE: Uphill Economy Update and Funding Request REQUEST OF COUNCIL: Staff requests Council provide guidance on moving forward with work related to the Uphill Economy. PREVIOUS COUNCIL ACTION: The Council selected the following as a Top 10 Goal in August 2015: “Identify and pursue economic opportunities that diversify Aspen’s economy without relying on physical development.” This is a continuation of a previous 2014 Council goal. BACKGROUND: Part of this goal focuses on the “uphill economy” as a way to build on Aspen’s existing small town mountaineering and skiing culture. The work in 2014 involved the creation of an Uphill Festival at the base of Aspen Mountain that included a vendor village which enabled event visitors to learn about uphilling and even test equipment. While that was a successful event, staff believes the next step to move this effort forward is an economic development plan to outline how Aspen can build on our existing skiing and uphilling profile to capture additional economic activity that does not rely on physical development. Conversations with representatives from the uphill industry and the Colorado Office of Economic Development have confirmed that a short and long term vision is needed. SUMMARY: City Special Events staff is working with the Aspen Skiing Company to put on another Uphill Festival. It is scheduled for February 27th at the base of Aspen Mountain, to coincide with the end of the Power of Four Race. This event is anticipated to build off the success of the 2015 inaugural event, and will include a vendor village as well as demos from local operators. Staff has been working with consultant Bob Schultz to draft an RFP requesting professional services for the creation of an “Uphill Economy Economic Development and Recruitment Plan,” which is intended to identify a strategic pathway and critical actions that the City can implement, either alone or in cooperation with other actors, to position Aspen as a home for research and P36 IV. development and manufacturing of uphill athletic gear and associated businesses. The overarching goal is to build on Aspen’s existing skiing and small town character by attracting businesses, events, and visitors that focus on our mountain character and past, rather than on development. This effort supports the AACP goal of reducing the “boom – bust” nature of the development industry. The deliverables for the plan include a detailed analysis of the existing uphill market, how Aspen is currently positioned relative to the overall industry, key trends in the industry, and how Aspen can improve its market position. The plan would outline a short and long term strategy for building on Aspen’s mountaineering and uphill reputation with an ultimate goal of creating a local economic engine unrelated to real estate and development. Without this plan staff does not believe any additional work beyond putting on uphill events is likely to occur. There are no economic development experts currently on city staff, so a consultant team is needed to create this plan. FINANCIAL/BUDGET IMPACTS: Should the Council determine to move forward with an RFP, a project budget will need to be determined and a budget supplemental requested. The size of the supplemental will be dependent on responses to the RFPs. Staff anticipates this work will be $15,000 - $35,000. RECOMMENDED ACTION: Staff recommends moving forward with an RFP in order to move this overall effort forward. CITY MANAGER COMMENTS: P37 IV.