HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 03/02/2021 - FIRST READING OF ORDINANCE NO. 037, 2021, APPROPRI Agenda Item 8
Item # 8 Page 1
AGENDA ITEM SUMMARY March 2, 2021
City Council
STAFF
Tim McCollough, Deputy Director, Utilities Light and Power
Cyril Vidergar, Legal
SUBJECT
First Reading of Ordinance No. 037, 2021, Appropriating Prior Year Reserves and Making Supplemental
Appropriations for the Utilities Locating Department.
EXECUTIVE SUMMARY
The purpose of this item is to provide supplemental resources in the 2021 budget for the Utilities Locating
Department. Utilities has a regulatory obligation to fulfill underground facility locating requests within 48 hours
of notification and the current volume of locating requests exceeds the normal capacity of Department
resources. This appropriation will provide additional resources to contract for third party service s to meet
locating request obligations in 2021.
STAFF RECOMMENDATION
Staff recommends adoption of the Ordinance on First Reading.
BACKGROUND / DISCUSSION
In Colorado, and most states, it is the law to “call before you dig.” Damage prevention laws have two primary
goals: to protect life and to protect infrastructure. Fort Collins Utilities (Utilities) is defined as a facility owner
under Colorado’s “One-Call” utility locate law and nearly all utility infrastructure in Fort Collins is underground.
Therefore, Utilities is legally obligated to mark all facilities in any proposed excavation area within 48 hours of
being notified so excavators can avoid hitting and damaging the infrastructure.
The level of service Utilities must provide to the community is defined by the One-Call law and is set by the
amount of construction happening in our community .
Utilities has historically provided this service with its internal Utility Locates Department. In 2020, the
Department marked or cleared 117,773 facilities fr om locate requests with a 99.995% accuracy rate. The
Department locates all City utility infrastructure for Utilities and Connexion, in addition to providing services to
some areas of the general fund that have underground infrastructure.
The staffing levels of the Department have increased over the last two budget cycles. Prior to the start of
Connexion construction, staff projected an increase in locate volume and a need to add resources to the
Department.
• In 2018, the staffing levels were eight full time employees.
• In FY2019/20, two contractual employees were added to the Department.
• In FY2021, two additional contractual employees were added to the Department.
In 2020, Connexion hit full stride in construction activities and for some of the year the reso urces in the
Department were adequate to keep up with the regulatory obligations. As the summer construction season
progressed, the additional contractual staff anticipated in the 2021 budget were added early to keep up with
Agenda Item 8
Item # 8 Page 2
increasing locate request volumes. Figure 1 depicts three years of locate volumes for Utilities. There was a
50% increase in overall locate volume from 2019 to 2020. In the second half of 2020 , locate volumes
exceeded the resource capacity.
Figure 1: Utility Locates Monthly Production, 2018 through 2020
In 2021, it is anticipated that locate request volumes and resource demands on the department will exceed
those experienced in 2020 due to several factors, including:
• Similar levels of Connexion construction;
• A growing fiber optic system that needs locating;
• A significant increase in small cell installations in Fort Collins, each of which will generate one of more
locate requests;
• Economic recovery that will bring forward other types of development work. Early indications show there is
a full slate of development related projects in the pipeline for 2021.
The current lack of resources to meet the needed level of service is a risk to our community and municipal
organization for several reasons:
• A missing or late locate ticket can lead to dig-ins that put lives and essential services at risk.
• It is also an ongoing risk to the Connexion build out. A locate request is one of the early enablers to allow
the start of construction for vault and conduit installation and every service drop once s ervice is available
and requested.
• It is a key enabler for nearly every City service that involves building or maintaining infrastructure or that
requires excavation.
There are several strategies currently in place to help mitigate the impacts of the reso urce constraints. These
strategies have worked to a degree but are not adequate for the volume of locates expected in 2021 and are
not sustainable in the long term. These strategies include staff coordinating closely with all excavators to
prioritize locate request tickets that are past due and bringing in staff from other departments who have
previous locating experience to assist with locate request volumes.
Agenda Item 8
Item # 8 Page 3
Staff recommends adding a supplemental locates contract with an external locating firm to resolv e the
resource constraints through the remainder of the Connexion construction. This external contract would allow
for some flexibility in staffing levels to handle peak volumes. To expedite contracting if funded, staff intends to
leverage another community’s procurement process.
In addition, the City Manager is recommending the transfers as provided in this Ordinance from the utility
enterprise funds to the Utility Customer Service and Administration Fund, and has further determined that the
purpose for which they are appropriated from said enterprise funds, which is to fund utility locates as required
by law, will remain unchanged as also appropriated in Ordinance for expenditure from the Utility Customer
Service and Administration Fund to secure by contract supplemental utility locate services.
CITY FINANCIAL IMPACTS
The funding model of damage prevention locating services is that the facility owner pays for the locating
service. The person or entity requesting the excavation locate bears no cost for th e services. Regardless of
what is driving the higher volume of locating services required, the facility owners with infrastructure in the
ground bear the cost of providing the services.
The current total budget for the Utility Locating department in FY2021 is approximately $1.2 million. Based on
the current projections, an additional $500,000 is needed in 2021 for a supplemental locates contract. The
ongoing needs for this supplemental resource will be evaluated throughout the year. Funding for 2022 would
be requested through the upcoming budget process.
Additional funding is proposed to be split equitably across the utility enterprise funds using the same allocation
method as the current funding. Fund allocations are determined based on the ratio of faci lity types located by
the department. The electric and stormwater service territories are larger and therefore the allocation is larger
for those funds. Broadband’s contribution will continue to grow as the fiber system grows.
The funding source for this appropriation is proposed to be reserves from each enterprise fund.
Table 1: Proposed funding and allocation by utility enterprise fund.
FUND ALLOCATION FROM RESERVES
Electric 26% $131,000
Water 20% $99,000
Wastewater 20% $99,000
Stormwater 26% $131,000
Broadband 8% $40,000
100% $500,000
BOARD / COMMISSION RECOMMENDATION
The Council Finance Committee considered this item at its January 25, 2021, regular meeting and approved
this item to be brought to the full Council for consideration as request ed by staff. (Attachment 1)
The Energy Board considered this item at its February 11, 2021, regular meeting and provided unanimous
support for this supplemental appropriation to be considered and adopted by Council. The Energy Board
provided feedback that the approach proposed by staff is prudent given the temporary nature of the increased
demand. (Attachment 2)
The Water Board considered this item at its February 18, 2021, regular meeting and provided unanimous
support for this supplemental appropriation to be considered and adopted by Council. (Attachment 3)
Agenda Item 8
Item # 8 Page 4
ATTACHMENTS
1. Finance Committee Minutes Excerpt, Janaury 25, 2021 (draft) (PDF)
2. Energy Board Minutes Excerpt, February 11, 2021 (draft) (PDF)
3. Water Board Minutes Excerpt, February 18, 2021 (draft) (PDF)
Finance Administration
215 N. Mason
2nd Floor
PO Box 580
Fort Collins, CO 80522
970.221.6788
970.221.6782 - fax
fcgov.com
Finance Committee Meeting Minutes
January 25, 2021
10:00 am ‐ noon
Zoom Meeting
Council Attendees: Mayor Wade Troxell, Ken Summers, Emily Gorgol
Absent: Ross Cunniff
Staff: Darin Atteberry, Kelly DiMartino, Kyle Stannert, Travis Storin, Carrie Daggett,
John Duval, Tyler Marr, Teresa Roche, Theresa Connor, Tim McCollough, Lance
Smith, Colman Keane, John Stokes, Aaron Harris, Janice Saeger, Travis Walker,
Caryn Champine, Paul Sizemore, Chad Crager, Meaghan Overton, Blaine Dunn,
Kelley Vodden, Jordan Granath, Renee Callas, Dave Lenz, Jo Cech, Zack Mozer,
Lawrence Pollack, Erik Martin, Jackie Kozak Thiel
Others: Kevin Jones, Chamber of Commerce
Gavin Kaszynski
____________________________________________________________________________________
Meeting called to order at 10:08 am
Mayor Troxell; I would like to note for the record that I have conferred with the City Manager and the City
Attorney and have determined that the Committee should conduct this meeting remotely because meeting in
person would not be prudent for some or all persons due to a public health emergency.
Approval of Minutes from the November 16, 2020 Council Finance Committee Meeting. Ken Summers moved for
approval of the minutes as presented. Emily Gorgol seconded the motion. Minutes were approved unanimously via
roll call by Ken Summer, Emily Gorgol and Mayor Troxell.
A. Additional Locate Resources
Tim McCollough, Deputy Director, Utilities Light & Power
Lance Smith, Director Financial Planning and Analysis
SUBJECT FOR DISCUSSION: 2021 Utilities Locating Supplemental Resources
EXECUTIVE SUMMARY
Staff recommends bringing forward an off‐cycle appropriation to City Council in early 2021 in the amount of
$500,000 funded from reserves to address resource limitations in the Utility Locates department. The current
demands on the department exceed the available resources. Excavators and engineering firms are starting to
see delays in the department’s ability to provide timely locates in the Fort Collins jurisdiction.
ATTACHMENT 1
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GENERAL DIRECTION SOUGHT AND SPECIFIC QUESTIONS TO BE ANSWERED
Does Council Finance support this off‐cycle appropriation proposal going to Council for consideration in March
2021?
BACKGROUND/DISCUSSION
In Colorado, and most states, it is the law to call before you dig. Damage prevention laws have two primary
goals, to protect life and to protect infrastructure. Fort Collins Utilities is defined as a facility owner under the
law and nearly all the utility infrastructure in Fort Collins is underground. Therefore, Fort Collins Utilities is
obligated by law to mark all facilities in any proposed excavation area within 48 hours so excavators can avoid
hitting and damaging the infrastructure.
This level of service Fort Collin Utilities must provide to the community is defined by law and is set by the
amount of construction happening in our community.
Fort Collins Utilities has historically provided this service with an internal department called Utility Locates. In
2020, the department marked or cleared 117,773 facilities from locate requests with a 99.995% accuracy rate.
The department locates all the utility infrastructure for Fort Collins Utilities and Fort Collins Connexion and
provides services to some areas of the general fund that have underground infrastructure.
The staffing levels of the department have increased over the last two budget cycles. Prior to the start of
Connexion construction, staff projected an increase in locate volume and a need to add resources to the
department.
In 2018, the staffing levels were 8 full time employees.
In FY2019/20 two (2) contractual FTEs were added to the department
In FY2021 two (2) additional contractual FTEs were added to the department
In 2020, Fort Collins Connexion hit full stride in construction activities and for some of the year the resources in
the department were adequate to keep up with the regulatory obligations. As the summer construction season
progressed the additional contractual staff anticipated in the 2021 budget were added early to keep up with
increasing locate request volumes.Figure 1 depicts three years of locate volumes for Fort Collins Utilities. There
was a 50% increase in overall locate volume from 2019 to 2020. In the second half of 2020 locate volumes
exceed the resource capacity.
3
Figure 1: Utility Locates Monthly Production, 2018 through 2020
In 2021, it is anticipated that locate request volumes and resource demands on the department will exceed
those experienced in 2020 due to several factors, including:
Similar levels of Connexion construction
A growing fiber system that needs located
A significant increase in small cell installations in Fort Collins, each of which will generate one of more locate
requests
Economic recovery that will bring forward other types of development work. Early indications show there is
a full slate of development related projects in the pipeline for 2021.
The current lack of resources to meet the needed level of service is a risk to our community and municipal
organization for several reasons.
A missing or late locate ticket can lead to dig‐ins that put lives and essential services at risk.
It is also an ongoing risk to the Fort Collins Connexion build out. A locate request is one of the early enablers
to allow the start of start construction for vault and conduit installation and every single service drop once
service is available and requested.
It is a key enabler for nearly every City service that involves infrastructure or excavation.
There are several strategies currently in place to help mitigate the impacts of the resource constraints. These
strategies have worked to a degree but are not adequate for the volume of locates expected in 2021 and are not
sustainable in the long term. These strategies include staff coordinating closely with all excavators to prioritize
locate request tickets that are past due and bringing in staff from other departments who have previous locating
experience to assist with locate request volumes.
4
Staff recommends adding a supplemental locates contract with an external locating firm to resolve the
resources constraints through the remainder of the Fort Collins Connexion construction. This external contract
would allow for some flexibility in staffing levels to handle peak volumes. To expedite contracting if funded,
staff intends to leverage another community’s procurement process.
Based on the current projections, $500,000 is needed in 2021 for a supplemental locates contract. The ongoing
needs for this supplemental resource will be evaluated throughout the year. Funding for 2022 would be
requested through the upcoming budget process.
Funding is proposed to be split equitably across the utility enterprise funds using the same allocation method as
the ongoing funding. Fund allocations are determined based on the ratio of facility types located by the
department. The electric and stormwater service territories are larger and therefore the allocation is larger for
those funds. Broadband’s contribution will continue to grow as the fiber system grows.
The funding source for this appropriation is proposed to be reserves from each enterprise fund.
Table 1: Proposed funding and allocation by utility fund.
FUND ALLOCATION FROM RESERVES
Electric 26% $131,000
Water 20% $99,000
Wastewater 20% $99,000
Stormwater 26% $131,000
Broadband 8% $40,000
100% $500,000
Discussion / Next Steps:
GENERAL DIRECTION SOUGHT AND SPECIFIC QUESTIONS TO BE ANSWERED
Does Council Finance support this off‐cycle appropriation proposal for $500K going to Council for consideration
in March 2021?
Propose a true up at the end of this year due to flex of Connexion portion.
It's a big deal and there's not a ton of choice, except to make sure we're stewarding dollars effectively
Mayor Troxell; I like your early slide that showed everything that is underground. We are a 5‐utility community
This needs to be and should be a core competency in our community – your team – you were right to
acknowledge that they are probably the hardest working group in the city because of the demands that are
placed on them ‐ contracting to help scale. Zooming out and thinking this is more than just locating ‐ core
competency such as mapping, modeling and detection locating services as it relates to billions of dollars of
underground infrastructure ‐ more than just a locating service ‐ you also mentioned 811 and as we think about
our franchise agreement with Xcel for natural gas. Can you talk about core competencies and this Integration
across platforms which are much more than just locating?
Tim McCollough; this department does way more than put paint on the ground, they are our eyes and ears in
the community, and they support development at every stage. They are the first contacts that many
developers, engineers and designers make as they have engineering requests. There is a typical type of locate
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request when someone needs to put a shovel into the ground which starts at the design phase. Deeply
integrated with very engineering firm, every developer and customer requests we receive as well.
They are a key resource as we improve our mapping system, and they do daily updates to our mapping system.
We have a vision of what this team can adapt to be in the future as we look beyond the Connexion project, GPS
And other value add services – locating may not be the best descriptor for the name of this department today
and won’t be in the future.
I would like to share what this group has done in the last year. When Covid came and we closed city facilities,
we adapted this group overnight to work remotely from their trucks and their volume has not decreased during
Covid. Their volume increased and they are dispatching from home. I would put this team up against any
external firm. They have handled 117K locate requests with only 6 errors overall which is unheard of in the
industry as an accuracy rate. Every ticket they compete protects our infrastructure and our community – they
are a key resource.
Emily Gorgol; where is the $500K paying for?
Tim McCollough; we proposing to let a contract with an external locating firm. So that $500K would support our
ability to add up to 4 add locate resources to help with peak ‐ add more boots on the ground to sustain through
this year and next year.
Emily Gorgol; why contractors instead of permanent staff?
Tim McCollough; We do anticipate the volume returning to a new normal at some point. We are always
cautious about adding staff that may need to be reduced later. Using external gives us the flexibility of being
able to handle peak volumes. We can ask them to add resources and to scale back as needed.
Emily Gorgol; Because we are seeing increased demand, I am supportive of this coming to Council.
In the 2022 budget, I would like this marked as an addition to the budget not as a carryover.
If this is something we are going to need to do for the future? Is it better for them to be employees of the city
and have benefits?
Tim McCollough; we do anticipate bringing this forward as a continued enhancement. You would see this as an
add. At some point beyond 2022 Connexion construction would be complete. The company we would seek to
contract with offers benefits to employees. It is not necessarily true about them being city staff would be better
or worse – as we scale back, we don’t want to add and scale down.
Ken Summers; a stop gap to get through Connexion. Would the work the contractors do be billed to the
respective department?
Tim McCollough; we keep track of every locate ticket‐ the color of paint‐ that applies to that obligation to pay
for the locate falls to the department – departments that have fiber optic and other infrastructure in the ground
that we located for‐ payment is made via an internal transfer to this department. Because we are dealing with
four enterprise funds in the Utilities and the General Fund –We do our best to account for who needs to
contribute since this is a shared service. It is a burden on General Fund as well ‐ as excavations happen
throughout the community.
Ken Summers; We are basically providing General Fund reserves to departments based on the various
allotments that make up $500K to be used to pay for the contractual services.
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Tim McCollough; small General Fund contribution ‐ less than 3% of the overall expenses from this department
come from General Fund based on the volume of infrastructure.
Travis Storin; we have city departments that have infrastructure in the ground and they are using Tim’s team as
the locate contractor because under 811 rules they are required to respond to locates. There is some portion
that they are paying back to the five utilities.
Ken Summers; I support bringing it forward. Is there any other option such as pay as you go?
If we don’t do this appropriation – what would we do?
Darin Atteberry; this is truly a cost of doing business. This is a cost of having 5 utilities.
This is one that the demand is such that we do need additional resources – they are proposing a cost‐conscious
way to do this – if this becomes a regular ongoing level of demand, we will look at insourcing this. Outsourcing if
the most prudent thing to do at this point ‐ we can ask about contractor benefits – we do that through our
purchasing process
Ken Summers; This is being driven by the Connection expansion. Question that might come up – be prepared –
when comes before Council – is this being driven Connexion ‐ why isn’t the Connexion utility paying for more?
Darin Atteberry; these costs will be equitably shared across all utilities that demand the service ‐The Connexion
rate payers will be paying their fair share of these incremental costs
Tim McCollough; as an example, one of the telecom providers did a major system rebuild ‐ if a large project
comes into town that requires a lot of excavation ‐ Xcel, Century Link, Comcast – Connexion is a driver ‐it falls to
the facility owner – Connexion is paying their fair share.
Colman Keane; As locates are done ‐ it will probably be higher than the table below by year end
FUND ALLOCATION FROM RESERVES
Electric 26% $131,000
Water 20% $99,000
Wastewater 20% $99,000
Stormwater 26% $131,000
Broadband 8% $40,000
100% $500,000
Ken Summers; it makes sense to use contractors if you don’t know the future demand.
Tim McCollough; budget is $1.2 M – we are asking to go to $1.7M in the short term and that is contributed to
this joint service. We are proposing reserves form each of the individual Utility Enterprise Funds (see above).
This is a regulatory obligation, an unfunded mandate based on the rules around 811. This is what each fund is
paying in.
Ken Summers; when presented to Council – emphasize that we aren’t taking money ‐ we are recognizing
unplanned additional expenditure for something that already exists as opposed to responding to something new
but is a response to volume.
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GENERAL DIRECTION SOUGHT AND SPECIFIC QUESTIONS TO BE ANSWERED
Does Council Finance support this off‐cycle appropriation proposal for $500K going to Council for consideration
in March 2021?
RESULT Committee approved this to go to the full Council as requested.
ENERGY BOARD
REGULAR MEETING
DRAFT: ABRIDGED FOR 2021 UTILITIES LOCATING SUPPLEMENTAL
RESOURCES
February 11, 2021 – 5:30 pm
Remote – Zoom Meeting
ROLL CALL
Board Members Present: Jeremy Giovando, Bill Becker, Dan Gould, Alan Braslau, Marge Moore, Steve
Tenbrink, John Fassler, Amanda Shores, Sue McFaddin
Board Members Absent:
OTHERS PRESENT
Staff Members Present: Adam Bromley, Christie Fredrickson, Tim McCollough, Brian Tholl, Cyril
Vidergar, Cameron Gloss, John Phelan, Brad Smith, Rhonda Gatzke, Theresa Connor, Molly Saylor,
Leland Keller
Platte River Power Authority: Trista Fugate
Members of the Public: Rick Coen, Rich Stave
2021 UTILITIES LOCATING SUPPLEMENTAL RESOURCES
Tim McCollough, Deputy Director, Utilities Light & Power
Fort Collins has many beautiful neighborhoods and landmarks, but it is easy to forget what lies beneath
the surface of the City’s footprint. Much of the City’s utility infrastructure, including pipes, wires, and
cables, are located underground. That infrastructure needs protected because that is what keeps the
City’s facilities and services running all day, every day.
The City is committed to deploying and delivering reliable, high-speed internet services throughout the
City, as well as maintaining and protecting assets and infrastructure to drive reliability, cost effectiveness,
efficiency, and improving the customer experience. These are part of the Utility’s alignment with the
City’s Strategic Plan (Economic Health 3.6, and High Performing Government 7.8, respectively).
In Colorado, it is law to call 811 before you dig; hitting a buried line while digging can disrupt utility
service, cost money to repair, or cause serious injury or death. The same law requires facility owners to
locate and mark the utilities within 48 hours of a call being placed. The level of service the City must
provide to the community is defined by law and set by the amount of construction happening in the
community.
Utilities Locating Operations is an internal City department. In 2020, the department was composed of
eight full time employees and four contractual employees; they located over 117,000 individual facility
locates (across 40,000 tickets) with an accuracy rate that exceeded 99.99%. Location Operations is
funded by all five utility funds (including Connexion) as a shared service, since all the City’s infrastructure
is underground. They will also work with and bill other City departments, such as Traffic, Transfort, and
IT, for locates.
There was a 50% increase in volume from 2019 to 2020, which sustained through the winter season.
The increase was primarily driven by Connexion, but due to the COVID-19 pandemic there was also an
increase in landscaping projects while many people were staying home. Beginning in the middle of 2020
and throughout the end of the year, ticket volume began to exceed the Locating team’s resource capacity,
ATTACHMENT 2
ENERGY BOARD
REGULAR MEETING
which has led to past-due tickets. Staff did implement mitigation plans, such as working with excavators
to prioritize daily ticket requests, as well as working with staff who had previously been a part of the
Locating team before moving on to new positions within the City.
Staff is anticipating the volume to continue to increase with Connexion still under construction and a
growing fiber system, as well as economic recovery that will bring forward additional development work.
There will also be a significant increase in small cell installations (small radio equipment affixed to existing
infrastructure to assist with the transmission of data to and from wireless devices), each of which will
require a locate ticket.
In order to meet the current and anticipated level of volume, staff is recommending a supplemental
contract with an external Locating firm with an off-cycle budget appropriation for $500,000 in 2021 (to be
re-evaluated in 2022 through the normal budgeting process). The funding for this offer would come from
reserves and be split equitably (geographic size of service territory and number of tickets by facility)
across the five utility enterprise funds.
Board members wondered what a typical year of funding for this department looks like. Mr. McCollough
said it is normally budgeted at $1.2 million, so this would expand the funding 40-50% in the 2021 budget
year. Eventually, the Connexion project will be complete and the resources can be scaled back. Board
member Shores wondered if the length of the construction build out is what is dictating the short-term
contract. Mr. McCollough said the City is strongly committed to maintaining an internal department; the
employees are highly skilled and do an incredible job; however, in the short term it would be difficult to
hire permanent staff to meet the demands due to the time it would take to onboard and train, and it is
important to consider that this volume will likely decrease substantially in one or two years. It would be
unfortunate to hire, onboard, and train new employees only to have to let them go when the demand is no
longer there. It is more expensive to hire an outside firm, but the firm comes fully prepared with trained
employees, trucks, materials, and consumables. They are capable and ready to work their first day on
the job.
Board member McFaddin moved to support the off-cycle appropriation proposal for Utilities
Locating Services going to Council for consideration in March 2021.
Board member Tenbrink seconded the motion.
Discussion:
Chairperson Becker said it is an expensive contract, but it seems prudent given the temporary nature of
the demand. Mr. McCollough noted in many ways, it is the cost of doing business as an underground
utility, a single dig-in can cost upwards of tens of thousands of dollars in infrastructure repair, let alone
interruptions of service.
Vote on the motion: It passed unanimously 9-0
Excerpt from Unapproved DRAFT MINUTES WATER BOARD
REGULAR MEETING
February 18, 2021, 5:30 p.m. – 7:30 p.m.
via Zoom
02/18/2021 – Excerpt from Unapproved DRAFT MINUTES Page 1
2021 Utilities Locating Supplemental Resources
(Attachments available upon request)
Utilities Deputy Director - Light & Power Tim McCollough provided a summary of the
appropriation request. The current demands on the department exceed the available
resources, in part due to Fort Collins Connexion construction. Excavators and
engineering firms are starting to see delays in the department’s ability to provide timely
locates in the Fort Collins jurisdiction. Staff recommends bringing forward in March an
off-cycle appropriation to City Council of $500,000 funded from reserves to address
resource limitations in the Utility Locates division.
Discussion Highlights
Board members commented on or inquired about various related topics including
funding sources and equitable allocation; Utilities service area and city limits (service
area goes beyond city limits into Growth Management Area); 2018 locating law and
subsequent increased engineering locate requests; the buildout and undergrounding of
a new utility, Fort Collins Connexion, over three years compared to half the city’s Light
& Power undergrounding over 25 years starting in the 1980s; actual number of locate
requests was close to expected but length and effort required for each was greater
than expected.
Board Member Paul Herman moved that the Water Board recommends City
Council support the off-cycle locates appropriation as proposed by staff.
Board Member Cibi Chinnasamy seconded the motion.
Vote on the Motion: it passed unanimously, 10-0
ATTACHMENT 3
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ORDINANCE NO. 037, 2021
OF THE COUNCIL OF THE CITY OF FORT COLLINS
APPROPRIATING PRIOR YEAR RESERVES AND MAKING SUPPLEMENTAL
APPROPRIATIONS FOR THE UTILITIES LOCATING DEPARTMENT
WHEREAS, Colorado’s “One-Call” law (Colorado Revised Statutes Sections 9-1.5-101
et seq.) requires individuals to contact a state agency (Colorado811) prior to commencing
excavation work, in the interest of protecting life and preventing damage to underground utility
infrastructure; and
WHEREAS, nearly all utility infrastructure in Fort Collins is located underground,
including the City’s traditional electric and water utilities, and Fort Collins Connexion
(Connexion) broadband facilities; and
WHEREAS, to assist excavators avoid damaging underground facilities, the One-Call
law requires Fort Collins Utilities to register City facilities with Colorado811 and to mark all
facilities in proposed excavation areas within 48 hours of receiving notice from Colorado811;
and
WHEREAS, facility owners of underground infrastructure bear the cost of providing
locate services and Fort Collins Utilities has historically performed locates through the Utility
Locates Department, which in 2020, marked 117,773 facilities with a 99.995% accuracy rate;
and
WHEREAS, facility locate volumes and resource demands are anticipated to significantly
increase in 2021, due to several factors, including continued deployment of Connexion facilities
and the extensive fiber optic system installed in 2020, increased rates of small cell installations,
and increased private development work as projects delayed in 2020 recommence; and
WHEREAS, Utilities staff evaluated strategies to maintain current service levels and
prepare for anticipated demands in 2021, including closer coordination with excavators to
prioritize locate requests and utilizing staff from other departments with locating experience to
assist Utility Locates’ services; and
WHEREAS, staff’s evaluation concluded the most efficient strategy to meet projected
resource demands through the remainder of 2021 and Connexion construction is to contract for
supplemental third party locate services, which will allow for flexibility in Utilities staffing and
the ability to quickly scale up service capacity to handle peak seasonal volumes; and
WHEREAS, Utilities staff recommended an appropriation and transfer of $500,000 pro
rata from the respective utility enterprise fund reserves for expenditure from the Utility Customer
Service and Administration Fund, in order to secure by contract the supplemental utility locate
services; and
WHEREAS, this appropriation benefits public health, safety and welfare of the residents
of Fort Collins and serves the utility purpose of enabling timely locating and protecting of City -
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owned underground utility infrastructure, which reduces the need for costly repairs to City utility
systems and avoids service outages; and
WHEREAS, Article V, Section 9 of the City Charter permits the City Council to
appropriate by ordinance at any time during the fiscal year such funds for expenditure as may be
available from reserves accumulated in prior years, notwithstanding that such reserves were not
previously appropriated.
WHEREAS, Article V, Section 10(b) of the City Charter permits the City Council, upon
recommendation by the City Manager, to transfer any unexpended and unencumbered
appropriated amount from one fund to another fund provided the purpose for which the
transferred funds are to be expended remains unchanged; and
WHEREAS, the City Manager is recommending the transfers as provided in this
Ordinance from the utility enterprise funds to the Utility Customer Service and Administration
Fund and has determined the purpose for which they are appropriated herein from said enterprise
funds, which is to fund utility locates as required by law, will remain unchanged as herein
appropriated for expenditure from the Utility Customer Service and Administration Fund to
secure by contract supplemental utility locate services.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF
FORT COLLINS as follows:
Section 1. That the City Council hereby makes and adopts the determinations and
findings contained in the recitals set forth above.
Section 2. That there is hereby appropriated from prior year reserves in the Light &
Power Fund the sum of ONE HUNDRED THIRTY-ONE THOUSAND DOLLARS ($131,000)
for expenditure from the Light & Power Fund for transfer to the Utility Customer Service and
Administration Fund and appropriated therein for expenditure to secure by contract supplemental
utility locate services.
Section 3. That there is hereby appropriated from prior year reserves in the Water
Fund the sum of NINETY-NINE THOUSAND DOLLARS ($99,000) for expenditure from the
Water Fund for transfer to the Utility Customer Service and Administration Fund and
appropriated therein for expenditure to secure by contract supplemental utility locate services.
Section 4. That there is hereby appropriated from prior year reserves in the
Wastewater Fund the sum of NINETY-NINE THOUSAND DOLLARS ($99,000) for
expenditure from the Wastewater Fund for transfer to the Utility Customer Service and
Administration Fund and appropriated therein for expenditure to secure by contract supplemental
utility locate services.
Section 5 That there is hereby appropriated from prior year reserves in the
Stormwater Fund the sum of ONE HUNDRED THIRTY-ONE THOUSAND DOLLARS
($131,000) for expenditure from the Stormwater Fund for transfer to the Utility Customer
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Service and Administration Fund and appropriated therein for expenditure to secure by contract
supplemental utility locate services.
Section 6. That there is hereby appropriated from prior year reserves in the
Broadband Fund the sum of FORTY THOUSAND DOLLARS ($40,000) for expenditure from
the Broadband Fund for transfer to the Utility Customer Service and Administration Fund and
appropriated therein for expenditure to secure by contract supplemental utility locate services.
Introduced, considered favorably on first reading, and ordered published this 2nd day of
March, A.D. 2021, and to be presented for final passage on the 16th day of March, A.D. 2021.
__________________________________
Mayor
ATTEST:
_______________________________
City Clerk
Passed and adopted on final reading on the 16th day of March, A.D. 2021.
__________________________________
Mayor
ATTEST:
_______________________________
City Clerk