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COUNCIL - COMPLETE AGENDA - 06/08/2021 - WORK SESSION
City of Fort Collins Page 1 Jeni Arndt, Mayor Emily Gorgol, District 6, Mayor Pro Tem Susan Gutowsky, District 1 Julie Pignataro, District 2 Tricia Canonico, District 3 Shirley Peel, District 4 Kelly Ohlson, District 5 Remote Meeting City Hall West 300 LaPorte Avenue Fort Collins, Colorado Cablecast on FCTV Channel 14 on Connexion Channel 14 and 881 on Comcast Carrie Daggett Darin Atteberry Delynn Coldiron City Attorney City Manager City Clerk Upon request, the City of Fort Collins will provide language access services for individuals who have limited English proficiency, or auxiliary aids and services for individuals with disabilities, to access City services, programs and activities. Contact 221-6515 (V/TDD: Dial 711 for Relay Colorado) for assistance. Please provide 48 hours advance notice when possible. A petición, la Ciudad de Fort Collins proporcionará servicios de acceso a idiomas para personas que no dominan el idioma inglés, o ayudas y servicios auxiliares para personas con discapacidad, para que puedan acceder a los servicios, programas y actividades de la Ciudad. Para asistencia, llame al 221-6515 (V/TDD: Marque 711 para Relay Colorado). Por favor proporcione 48 horas de aviso previo cuando sea posible. City Council Work Session June 8, 2021 6:00 PM CALL TO ORDER. 1. Visit Fort Collins Destination Master Plan and Recovery Plan. (staff: Amanda King; 15 minute presentation; 30 minute discussion) The purpose of this item is to provide an update on the Destination Master Plan and Recovery Plan, recognizing the impacts to the travel and tourism industry. Cynthia Eichler, Visit Fort Collins President and CEO will be presenting along with a consultant. 2. Water Utility Overview. (staff: Theresa Connor; 20 minute presentation; 30 minute discussion) The purpose of this item is to provide an overview of the Fort Collins water utility, which provides reliable, high-quality water for approximately two-thirds of the city’s residents and businesses. On average, 26 million gallons of water are treated every day. This represents one of the largest investments the City makes in the Environmental Health Outcome Area within the City’s services. Investment will be needed now and into the future to address aging water infrastructure, adapt to climate change, meet increased regulations, and ensure enough water to sustain our community’s quality of life today and tomorrow. City of Fort Collins Page 2 3. Safe Water Action Program. (staff: Liesel Hans; 15 minute presentation; 45 minute discussion) The purpose of this work session is to discuss the Safe Water Action Program (SWAP), which is a public health initiative from Fort Collins Utilities to accelerate the identification and replacement any remaining aging galvanized water service lines (utility-owned portion) and lead goosenecks. It is also an effort to educate the public about lead in drinking water, how to identify potential sources of risk, and easy actions anyone can take to reduce risk. While our risk is very low, SWAP protects public health and proactively maintains the safety and reliability of drinking water. ANNOUNCEMENTS. ADJOURNMENT. DATE: STAFF: June 8, 2021 Amanda King, Communications/Public Involvement Director WORK SESSION ITEM City Council SUBJECT FOR DISCUSSION Visit Fort Collins Destination Master Plan and Recovery Plan. EXECUTIVE SUMMARY The purpose of this item is to provide an update on the Destination Master Plan and Recovery Plan, recognizing the impacts to the travel and tourism industry. Cynthia Eichler, Visit Fort Collins President and CEO will be presenting along with a consultant. GENERAL DIRECTION SOUGHT AND SPECIFIC QUESTIONS TO BE ANSWERED 1. Does Council have any questions or feedback about the Destination Master Plan? 2. Does Council have any questions or feedback about the Destination Recovery Plan? BACKGROUND / DISCUSSION In 1984, Fort Collins instituted a 3% lodging tax. Shortly thereafter, the Fort Collins Convention and Visitors Bureau (now dba Visit Fort Collins) was formed to serve as the destinati on marketing and convention service agency for the City. The City contracts with Visit Fort Collins (VFC) to provide various convention and visitors services. Since 2006, the contract has been based on a funding model whereby VFC receives 70% of the lodg ing tax dollars; the Cultural Resources Board receives the remaining 30% to distribute as Fort Fund grants. Typically, the contract is renewed every five years through a competitive RFP process. In 2020, Council approved a one -year contract extension due to the ongoing impact and economic uncertainty related to COVID -19. An RFP process will be conducted again in late 2021 or early 2022. Within its contractual services, VFC oversees destination sales and marketing, and conference services. VFC provides information services for visitors and residents through public relations and marketing programs and produces an annual Visitors Guide with 40,000 distributed. The VFC website serves as an online hub of destination information and it shares a variety of divers e content across several social media platforms. VFC operates the downtown visitor information center and the state’s Colorado Welcome Center. VFC also facilitates the successful Certified Tourism Ambassador hospitality training program. Destination Master Plan: In 2019, a Tourism and Destination Master Plan was funded, with the City and VFC each contributing $50,000 to fund the plan. The planning process was paused in April 2020 due to impacts from the COVID-19 pandemic on the consulting partner, stakeholder participation and continued uncertainty within the tourism industry. The process resumed in January 2021 and the final plan has been drafted. Destination Recovery Plan: As the pandemic progressed, the travel and tourism industry experienced negative impacts at higher levels than most economic categories. With approval from the Visit Fort Collins Board of Directors, Clarity of Place was hired to facilitate a plan for recovery for travel and tourism in Fort Collins. Engagement for the Destination Recovery Plan began in January 2021. The strategic goals include short - and mid-term actions to move toward rebuilding economic vibrancy and resilience within the tourism industry sectors. 1 Packet Pg. 3 June 8, 2021 Page 2 It will also provide a bridge to utilize the Destination Master Plan once immediate needs are met. In Fort Collins, lodging collections have been negatively impacted more than any other citywide category. Lodging tax collections were down 47.5% through December 2020. No other category comes close to this loss. Other metrics include decreased occupancy by 22%, average daily rate decreased by $27.24, and RevPAR (revenue per available room) by $40.89. Year to date, April 2021 is the first month improvement has been documented. Lodging tax increased by 48% which is at a similar collection level to benchmarks from 2010. The recently completed summary of economic impact demonstrates clear return on investment. • Direct economic impact was $220 million, up 26% from the previous reporting period. • Total jobs 4,197, an 10.4% increase from the previous reporting period. • Sales tax generated $10 million, an increase of 30.7% from the previous reporting period. A 2020 Year End memo was shared with Council and included an updated Visitor Study and Economic Impact Study: <https://citydocs.fcgov.com/?cmd=convert&vid=218&docid=3512847&dt=MAIL+PACKET> ATTACHMENTS 1. Destination Master Plan (PDF) 2. Destination Recovery Plan (draft) (PDF) 3. Lodging Tax Collections YTD April 2021 (PDF) 4. Rocky Mountain Lodging Reports (PDF) 5. PowerPoint Presentation (PDF) 1 Packet Pg. 4 Destination Master Plan February 26, 2020 ATTACHMENT 1 1.1 Packet Pg. 5 Attachment: Destination Master Plan (10349 : Visit Fort Collins Destination Master Plan What is a Destination Master Plan? Establishes destination direction across the entire community •Research •Justification •Strategic Recommendations •Expectations Establishes direction for a specific organization •Analysis •Rationalization •Strategic Guidance •Expectations Establishes annual tactical translation & deployment •Goals •Tactics •Assignments •Steps Destination Master Plan Summary 2 Destination Master Plan Strategic Plan Annual Business Plan 1.1 Packet Pg. 6 Attachment: Destination Master Plan (10349 : Visit Fort Collins Destination Master Plan •Drive a sustainable tourism development model. •Stimulate economic activity capable of generating inclusive employment. •Prepare Fort Collins for future destination opportunity. •Develop quality of place across all parts of the Fort Collins community. Master Plan Intent Destination Master Plan Summary 3 Gathering Stakeholder Input Assessing Tourism Assets Determining Destination Development Developing Strategic Recommendations 27 focus groups/interviews 130 individuals 18 person steering committee Fort Collins City Council VFC Board of Directors City leadership Fort Collins City Plan Fort Collins Transportation Plan FOCO Creates Arts & Culture Master Plan Talent 2.0 Regional Workforce Sports Complex Feasibility Study JLL hotel business mix review RRC Visitor profile study '17 & ‘19 Think! Tourism Sentiment Index 4 key themes 3 signature links 11 strategic priorities Visit Fort Collins future actions City of Fort Collins future actions Partner future actions Feedback on shifting these from “Objectives” (from RFP) to expressed or intended outcomes 1.1 Packet Pg. 7 Attachment: Destination Master Plan (10349 : Visit Fort Collins Destination Master Plan Destination Master Plan Elements Destination Master Plan Summary 4 Branding Pride of Place Expanding Basecamp: Fort Collins Investing in Quality of Place Improving Gateways & Corridors Responding to Community Issues Leveraging Community Connections Encouraging Aspirational Concepts Fostering Creative Community Harnessing the essence of Fort Collins Configuring Events Supporting the needs of the Nighttime Economy Striving for Inclusion Branding our Community Building our Community Sustaining our Community Including our Community Expecting Inclusion Feedback on whether this Signature Link should be “Expecting”, “Seeking” or “Striving” For Inclusion Determine and state all connections to Triple Bottom Line 1.1 Packet Pg. 8 Attachment: Destination Master Plan (10349 : Visit Fort Collins Destination Master Plan Connecting Priorities to Leadership Fort Collins Hotels MULTIPLE LEADERS Expecting Inclusion Connecting Talent 2.0 Responding to Community Issues Encouraging Aspirational Concepts Fort Collins community partners Configuring Events Supporting the needs of the Nighttime Economy Branding Pride of Place Expanding Basecamp: Fort Collins Leveraging Community Connections Funding the FutureHarnessing the Essence of Fort Collins Investing in Quality of Place Improving Gateways & Corridors Fostering Creative Community 1.1 Packet Pg. 9 Attachment: Destination Master Plan (10349 : Visit Fort Collins Destination Master Plan Connecting Priorities to Leadership Fort Collins Hotels MULTIPLE LEADERS Expecting Inclusion Connecting Talent 2.0 Responding to Community Issues Encouraging Aspirational Concepts Fort Collins community partners Configuring Events Supporting the needs of the Nighttime Economy Branding Pride of Place Expanding Basecamp: Fort Collins Leveraging Community Connections Funding the FutureHarnessing the Essence of Fort Collins Investing in Quality of Place Improving Gateways & Corridors Fostering Creative Community 1.1 Packet Pg. 10 Attachment: Destination Master Plan (10349 : Visit Fort Collins Destination Master Plan Connection to Business Mix Purpose of Overnight Trip from survey of Fort Collins hotels Current Market Mix (From hotel survey) Projected Opportunity (Hotels) Future Market Mix (JLL) Convention & Sports Bids 5%7% Government 8%6% In-house Hotel Group 13%13% CSU related 13%13% Business Transient 20%18% Marketable Leisure 41%43% TOTAL 100%100% Down by <5% Down by 5-10% Down by >10% Up by <5% Up by 5-10% Up by >10% Projected Opportunity No change 1.1 Packet Pg. 11 Attachment: Destination Master Plan (10349 : Visit Fort Collins Destination Master Plan Branding our Community Weaving the authentic and genuine brand promise that captures the appeal and mystique of Fort Collins. K EY T HEME I MPORTANCE •Brands define community promise •Larger than slogan and logo •Mental position of the community’s overall personae •Convergence of stakeholders, community, talent prospects & customers 1.1 Packet Pg. 12 Attachment: Destination Master Plan (10349 : Visit Fort Collins Destination Master Plan Branding Pride of Place Formulating and articulating the promise that Fort Collins offers inwardly and externally to the world S TRATEGIC C ONCEPT I NPUTS TO U NDERSTAND C URRENT /FUTURE P OTENTIAL R EMAINING S TEPS •Competitive analysis & benchmark review •JLL databases •University City groups •Conversations with business & civic community •Focus groups & interviews •Strategic observations and casual input •Establish the brand development process •Connect to community pride •Form link with Talent 2.0 1.1 Packet Pg. 13 Attachment: Destination Master Plan (10349 : Visit Fort Collins Destination Master Plan •Examining the Comparative Set to determine potential direction •Note that logos included are not always reflective of the community’s brand promise •Breweries Beckon •High tech & hip •University City •Recreational Retreats Branding Pride of Place R ESEARCH 1.1 Packet Pg. 14 Attachment: Destination Master Plan (10349 : Visit Fort Collins Destination Master Plan Branding Pride of Place R ESEARCH •Breweries focus group documented a relationship based co-dependence among the businesses. •Fostered elements of brand promise: •Appreciation of one another •Genuine love of community •Hunger to share with guests and •A need for nurturing respect of place by those guests •Concept began to be repeated across other topical gatherings (retail, outdoor recreation, and restaurants) •Demonstrable examples through encounters How could we capture this pride without disrupting it? 6 Degrees of Separation –Fort Collins style 1.1 Packet Pg. 15 Attachment: Destination Master Plan (10349 : Visit Fort Collins Destination Master Plan Branding Pride of Place D IRECTION /STEPS •Trace & document the connections •Research the connectivity to image •Actualize the promise through: •Creative development •Compelling narrative •Emphasize personal stories •Promise is social and engaged •Dare to be bold and defining 1. Traveled from Amarillo 3. Rafting guide suggested 2. Decided to go rafting 4. Tasting room rep suggested 5. Waitress suggested 1.1 Packet Pg. 16 Attachment: Destination Master Plan (10349 : Visit Fort Collins Destination Master Plan Branding Pride of Place A CTION On-going Actions: Culturize (mentally plant the promise) the brand throughout Fort Collins. Actions for Years One & Two: •Research the image of the Pride of Place o VFC leads o Integrate through committee •Develop the creative translation o VFC leads o Integrate through committee •Configure culturalization plan o VFC leads o CFC & Chamber key supporters o Integrate through committee Actions for Years Three & Four: •Implement and implant the brand through everything o Everyone! 1.1 Packet Pg. 17 Attachment: Destination Master Plan (10349 : Visit Fort Collins Destination Master Plan Expanding Basecamp: Fort Collins Bundling targeted regional visitor experiences during the soft season around key assets that build from Fort Collins as the hub S TRATEGIC C ONCEPT I NPUTS TO U NDERSTAND C URRENT /FUTURE P OTENTIAL N EEDS •Visit Fort Collins visitor profile research •Expansion of existing strategy •Input from stakeholders •Target audiences (lifestyle, geographic or both) •Itinerary builder •Connected to metrics (not awareness) 1.1 Packet Pg. 18 Attachment: Destination Master Plan (10349 : Visit Fort Collins Destination Master Plan Expanding Basecamp: Fort Collins R ESEARCH Recreation/general vacation detail. Average length of stay 3.6 nights (median 3 nights), party size average of 3.4 people (median 2 people), 60% traveling with spouse, 38% first time visitors to FC, top activities are dining out (74%), Downtown Fort Collins (70%), shopping (47%), general sightseeing (46%), visit breweries (46%), hiking/climbing (41%), people watching/hanging out (35%), Horsetooth/water sports (25%). Average nights in the area detail. The average nights in the area is 4.1, though most visitors are staying 3 or fewer nights (53%). The median number of nights is 3. The average is pulled up somewhat by 10% of respondents who said they were staying 10 or more nights. 1.1 Packet Pg. 19 Attachment: Destination Master Plan (10349 : Visit Fort Collins Destination Master Plan Expanding Basecamp: Fort Collins R ESEARCH •Seasonal need from November through opening week of Rocky Mountain National Park •Shift in how other destinations adopt Fort Collins assets as their own o More neighboring accommodations o Hub & spoke approach o Fort Collins assets borrowed then replaced •Regional assets fit with the allure and draw of Fort Collins •Past success in media coverage and interest from regional efforts 1.1 Packet Pg. 20 Attachment: Destination Master Plan (10349 : Visit Fort Collins Destination Master Plan Expanding Basecamp: Fort Collins D IRECTION /STEPS •Formalize past regional efforts into concerted investment to o Focus on soft season business opportunities o Build distinctive experiences •Enlist support and investment from regional destination partners •Build outreach using media relations and direct marketing •Use scalable destination system o Media relations o Content development o Direct promotions o Collateral 1.1 Packet Pg. 21 Attachment: Destination Master Plan (10349 : Visit Fort Collins Destination Master Plan Expanding Basecamp: Fort Collins A CTION On-going Actions: Assemble regional product components and conduct visitor research. Ties To: Branding Actions for Years One & Two: •Enlist regional partners into the vision o VFC leads o Constructed coalition •Develop the experiential concepts o Coalition driven o Utilize FOCO talent & entrepreneurs •Craft a budget for first year media relations o Establish minimum level •Add content development for second year program Actions for Years Three & Four: •Add direct marketing for third year program •Expand with creative, experiential collateral 1.1 Packet Pg. 22 Attachment: Destination Master Plan (10349 : Visit Fort Collins Destination Master Plan Encompassing Everyone Working to assure that the destination is truly representative of the community S IGNATURE L INK I NPUTS TO ESTABLISH LINK S TEPS •Discussion with community groups •Demographic and lifestyle data •Convene inclusionary leadership council •Promote personal stories •Reference within cultural events •Embed intentionality within programs 1.1 Packet Pg. 23 Attachment: Destination Master Plan (10349 : Visit Fort Collins Destination Master Plan Striving for Inclusion OR Expecting Inclusion •Establish tie with current city programming for Diversity, Equity & Inclusion •Benchmark other programs (InLivingColorUtah) •Intentionally weave into other priorities •Leveraging Community Connections •Creative Community •Essence of Fort Collins •Configuring Events •Harness the connections to brand promise o Promotion of personal stories D IRECTION /STEPS Actions for Years One & Two: •Convene inclusionary leadership council o CFC leads o Blend hospitality & community •Develop key linkages to each priority beginning with: o Leveraging community connections o Branding Pride of Place Actions for Years Three & Four: •Develop results report o Content created/Stories gathered o Conference/Group leads •Expand and elevate programming 1.1 Packet Pg. 24 Attachment: Destination Master Plan (10349 : Visit Fort Collins Destination Master Plan Building our Community Preparing the physical environment that enhances quality of place in Fort Collins S TRATEGIC T HEME I MPORTANCE •Provide an achievable level of quality and ongoing care across current facilities •Promote differentiation of Fort Collins from other communities •Fill needed recreational and social gathering gaps currently found in Fort Collins 1.1 Packet Pg. 25 Attachment: Destination Master Plan (10349 : Visit Fort Collins Destination Master Plan Investing in Quality of Place Providing public gathering areas for Fort Collins to fill community needs while engaging with visitors and residents alike S TRATEGIC C ONCEPT I NPUTS TO U NDERSTAND C URRENT /FUTURE P OTENTIAL N EEDS •Facility feasibility study •Review with VFC and CFC operators •Narrow priorities •Discuss highest & best use •Review financials •Determine gaps in amenities and infrastructure •Other needs to support facilities •Amenities & services 1.1 Packet Pg. 26 Attachment: Destination Master Plan (10349 : Visit Fort Collins Destination Master Plan Investing in Quality of Place R ESEARCH •Examining the Comparative Set for insight on options to determine potential direction •Brand connected facilities –Madison, Nashville, Louisville •Persona of community –Denver (Red Rocks), Lexington, Asheville 1.1 Packet Pg. 27 Attachment: Destination Master Plan (10349 : Visit Fort Collins Destination Master Plan Investing in Quality of Place R ESEARCH Brand reflective convention centers Louisville Kentucky International Conv. Center •200,000 sq. ft. exhibit center •Over 300,000 total sq. ft. Madison Monona Terrace Convention Center •40,000 sq. ft. exhibit center •200,000 total sq. ft. Nashville Nashville Convention Center •353,000 sq. ft. exhibit center •Over 500,000 total sq. ft. 1.1 Packet Pg. 28 Attachment: Destination Master Plan (10349 : Visit Fort Collins Destination Master Plan Investing in Quality of Place R ESEARCH Denver, CO Red Rocks Amphitheatre •30,000 sq. ft. visitor center •3,600 private events room 1.1 Packet Pg. 29 Attachment: Destination Master Plan (10349 : Visit Fort Collins Destination Master Plan Investing in Quality of Place R ESEARCH Lexington, KY Kentucky Horse Park •Working horse farm •Equestrian event center •Educational theme park •Opened in 1978 1.1 Packet Pg. 30 Attachment: Destination Master Plan (10349 : Visit Fort Collins Destination Master Plan Investing in Quality of Place R ESEARCH Asheville, NC Riveter •40,000 sq. ft. total space •18,000 sq. ft. climbing Gym •Canopied Bike Park •Fitness Studios •Opened in January 2020 1.1 Packet Pg. 31 Attachment: Destination Master Plan (10349 : Visit Fort Collins Destination Master Plan Investing in Quality of Place D IRECTION /STEPS •Assemble dual direction o Invest to enhance quality of existing sites and venues o Explore creation of unique facility tied to brand promise and essence of Fort Collins •Establish a facility leadership body o Advise on community investments o Structure priorities o Foster community support •Deliver facility direction based on commitment to quality of place •Gather key research findings from sports complex analysis Initial concept for exploration: •Indoor flexible event space specializing in: o Training seminars o Volleyball o Indoor gathering •Connect to social component of brand •High tech engagement through local suppliers •Public –Private Partnership •Blend in amenity offerings as part of development concept o Retail o Liquid Arts o Creative Community 1.1 Packet Pg. 32 Attachment: Destination Master Plan (10349 : Visit Fort Collins Destination Master Plan Investing in Quality of Place A CTION On-going Actions: Manage venues based on quality of facility and connection to brand promise Possible Facility Leadership Body: Visit Fort Collins, City of Fort Collins, Fort Collins Chamber of Commerce, CSU, Local Corporations, USDA, Triple Crown Ties To: Branding Talent 2.0 Configuring Events Leveraging Community Connections Essence of Fort Collins Actions for Years Three & Four: •Assemble P3 investment concept o CFC o Facility leadership body •Expand & continue examination on venue opportunities and needs Actions for Years One & Two: •Establish a quality measurement for existing and future facilities •Convene facility leadership body o CFC leads o Integrate through committee •Conduct Phase 1 feasibility assessment on new venue concept o CFC & VFC leads with consultant o Facility leadership body o Opportunity for public private partnerships 1.1 Packet Pg. 33 Attachment: Destination Master Plan (10349 : Visit Fort Collins Destination Master Plan Improving Gateways & Corridors S TRATEGIC C ONCEPT I NPUTS TO U NDERSTAND C URRENT /FUTURE P OTENTIAL N EEDS Facilitating both the aesthetics and flow of individuals moving through Fort Collins •Community comparisons along I-25 •Utilize and connect to the City Plan and current City corridor improvement plans (underway) •Conversations with community stakeholders •Examine transportation priorities •Work through future alternative options •Converge both outdoor scenic beauty with iconic public art investment •Create sense of arrival with tie to community branding 1.1 Packet Pg. 34 Attachment: Destination Master Plan (10349 : Visit Fort Collins Destination Master Plan R ESEARCH Improving Gateways & Corridors •Examining the Comparative Set for insight on options to determine potential direction •I-25 Overpasses •Wayfinding programs •Landscaping –Public Art –Signage installation 1.1 Packet Pg. 35 Attachment: Destination Master Plan (10349 : Visit Fort Collins Destination Master Plan D IRECTION /STEPS Improving Gateways & Corridors •Integrate components from City Plan •Determine possible target areas •Provide examples and possible outcomes •Prioritize needed investment areas •Create alignment with and support for East Mulberry Corridor Plan 1.1 Packet Pg. 36 Attachment: Destination Master Plan (10349 : Visit Fort Collins Destination Master Plan A CTION On-going Actions: Continually focus on quality of community aesthetics Ties To: Branding Talent 2.0 Quality of Place Improving Gateways & Corridors Actions for Years Three & Four: •Prioritize additional steps and efforts o CFC leads •Integrate the brand within gateway and wayfinding design o CFC –VFC –DOT collaborate Actions for Years One & Two: •Connect to existing gateway efforts o CFC leads o Integrate DOT and Talent 2.0 •Connect to East Mulberry Plan & Mulberry Annexation o CFC leads o Integrate a neighborhood association •Develop iconic image standards including wayfinding expansion o CFC & VFC leads o Encourage community-wide participation 1.1 Packet Pg. 37 Attachment: Destination Master Plan (10349 : Visit Fort Collins Destination Master Plan Responding to Community Issues S TRATEGIC C ONCEPT I NPUTS TO U NDERSTAND C URRENT /FUTURE P OTENTIAL N EEDS Utilizing the destination master planning process to assist with framing critical community challenges •Utilize and connect to the City Plan •Include the Affordable Housing Strategic Plan, especially around hospitality workforce needs •Conversations with community stakeholders •Assemble & prioritize the list of associated challenges •Build case studies and examples from other communities •Develop an organized system to show the interrelation •Ensure full tie-in with sustainability and bottom line initiatives 1.1 Packet Pg. 38 Attachment: Destination Master Plan (10349 : Visit Fort Collins Destination Master Plan R ESEARCH Responding to Community Issues •Conversations provided a definitive list of issues facing Fort Collins •Discussions to determine connection and linkage to tourism •Destination Master Plan Leadership Committee •Visit Fort Collins Board •Visit Fort Collins staff •Averaged ratings by each group 1.1 Packet Pg. 39 Attachment: Destination Master Plan (10349 : Visit Fort Collins Destination Master Plan R ESEARCH Responding to Community Issues •Benchmarking with other communities provided additional insight: •Nature of community issue •Extent of community issue •Possible solutions •Results from programming 1.1 Packet Pg. 40 Attachment: Destination Master Plan (10349 : Visit Fort Collins Destination Master Plan ISSUE IMPACT ON TOURISM PRIORITY | ROLE 1 (low) 5 (high) RESPONSE FROM TOURISM Affordable Housing Pushes workforce to commuter locations Adds another factor to Transportation congestion Impacts talent recruitment and retention 5 | 2 JLL, 5 | 2.5 VFC Board, 5 | 1 VFC staff •Advocate for affordability of housing •Benchmark other communities Cannabis Creates a short-term tourism opportunity Prompts law enforcement challenge Adds a challenge to accommodations & venues 3 | 3, 1.5 | 1, 2 | 2 •Help develop policies •Disseminate information to visitors Childcare Creates challenge for workforce Impacts talent recruitment and retention 3 | 4, 4 | 2, 3 | 1 •Explore industry specific solution •Participate in community efforts Congestion & Transportation Slows distribution of guests and workforce through community 1 | 2, 4 | 3, 4 | 3 •Advocate for alternative transportation solutions and use •Benchmark other communities Diversity, Inclusion & Equity Must represent entirety of community Without diversity community feels less inviting Major component of brand promise make-up 5 | 5, 4 | 4, 4 | 3.5 •Include within all marketing material •Participate in conversations •Highlight engagement opportunities Environmental Sustainability Part of the essence of Fort Collins Connected to waste management, energy conservation & water quality 5 | 1, 4 | 1, 4 | 2 •Help encourage policies •Encourage conversation •Connect to City efforts Homelessness Affects perceptions of safety Exists in close proximity to downtown 5 | 3, 4 | 2, 4 | 2 •Advocate for alternative solutions for underperforming lodging properties •Benchmark other communities Over Crowding of Outdoors Affects Environmental stewardship Lowers visitor satisfaction Creates potential for local clashes with visitors 5 | 4, 4 | 4, 5 | 4 •Help develop policies •Disseminate information to visitors •Participate in community efforts Short Term Rentals Changes nature of neighborhoods Component of destination offering Linked to Affordable Housing issue 4 | 4, 4 | 2.5, 4 | 4 •Help develop policies •Determine balance within lodging •Research locally, benchmark others Responding to Community Issues Determine who is “Tourism”. CFC, VFC, hotel association, or other. 1.1 Packet Pg. 41 Attachment: Destination Master Plan (10349 : Visit Fort Collins Destination Master Plan A CTION On-going Actions: Compile and keep list of key issues & connection to tourism Ties To: Striving for Inclusion Talent 2.0 Creative Community Essence of Fort Collins Responding to Community Issues Actions for Years Three & Four: •Add third & fourth priority (score 4) in year 3 Actions for Years One & Two: •Adopt Issue & Response List o VFC Board & CFC •Prioritize to prepare responses (Score of 5) o VFC & CFC o Integrate through response committee •Add second priority (score 4) in year 2, if ready •Continue to investigate how other destinations are addressing issues 1.1 Packet Pg. 42 Attachment: Destination Master Plan (10349 : Visit Fort Collins Destination Master Plan Funding for the Future Securing competitive level funding for implementation of plan and showing the overall value of tourism to Fort Collins S IGNATURE L INK I NPUTS TO ESTABLISH LINK S TEPS •Funding comparisons across Colorado •Examples of funding/structural models •Supportive links between funding and outcomes •Develop approach with City and Hotel leaders •Provide modeling and strategy for investment •Assemble legal steps Destination 2018 Budget Lodging Tax Total Tax Assessment Rate Visit Denver $ 38,800,000 10.8%14.75%1% Snowmass Tourism $ 7,200,000 2.4%12.40% Breckenridge Tourism Office $ 5,682,000 3.4%10.90% Visit Colorado Springs $ 4,862,747 2.0%10.25% Visit Aurora $ 4,065,000 8.0%12.50%$2 Visit Estes Park $ 3,001,283 2.0%10.70% Aspen Chamber Resort Assoc.$ 2,900,000 2.0%11.30% Visit Grand Junction $ 2,890,000 6.0%14.02% Gunnison/Crested Butte $ 2,300,000 4.0%9.00% Telluride Tourism $ 2,300,000 2.0%12.65% Boulder CVB $ 2,021,315 7.5%12.49% Visit Fort Collins $ 1,293,582 3.0%10.55% Visit Durango $ 1,212,954 4.0%10.40% Visit Loveland $ 1,107,524 3.0%9.70% Visit Glenwood Springs $ 1,019,242 2.5%11.10% Steamboat Springs Chamber $ 850,000 3.0%11.40%** Visit Pagosa Springs $ 800,000 4.9%11.80% Alamosa Conv. & Visitors Bureau $ 739,620 5.9%13.90% 1.1 Packet Pg. 43 Attachment: Destination Master Plan (10349 : Visit Fort Collins Destination Master Plan •Pursue Tourism Business Improvement District funding structure o Assemble the steps and understanding o Develop the funding level model o Construct the benefit strategy o Navigate the legal and approval process •Convene informational workshops to build understanding •Operationalize the funding model & structure •Empower accommodations leadership •Increase meetings and information dissemination to hotel owners, GMs and sales leaders D IRECTION /STEPS Actions for Years One & Two: •Perform funding feasibility study o Civitas Advisors conducts o VFC leads o Integrate through finance committee •Develop the funding response plan o Civitas Advisors leads o Hotel participation Actions for Years Three & Four: •Implement and fund new programs o VFC leads Funding for the Future 1.1 Packet Pg. 44 Attachment: Destination Master Plan (10349 : Visit Fort Collins Destination Master Plan Sustaining our Community Ensuring that the future of Fort Collins is innovative and successful. S TRATEGIC T HEME I MPORTANCE •Triple bottom line is part of the core ethos of Fort Collins •Full tie to CSU programs and businesses •Connected to elements that define the culture or brand promise of Fort Collins 1.1 Packet Pg. 45 Attachment: Destination Master Plan (10349 : Visit Fort Collins Destination Master Plan Creative Community Profiling the artistic and cultural pursuits sought by visitors to Fort Collins. S TRATEGIC C ONCEPT I NPUTS TO U NDERSTAND C URRENT /FUTURE P OTENTIAL N EEDS •Visitor profile activity research •Social media engagement •Conversations with cultural & creative community representatives •Connection to the FoCo Creates: Arts and Culture Master Plan •Highlight key products that use cultural scenarios to drive overnight demand 1.1 Packet Pg. 46 Attachment: Destination Master Plan (10349 : Visit Fort Collins Destination Master Plan R ESEARCH Creative Community The Arts & Cultural Attraction of Fort Collins The culture we offer The artistic and cultural pursuits sought by visitors to Fort Collins •Music •Performance •Public Art •Museums •Galleries •Heritage •History •Events & Festivals 1.1 Packet Pg. 47 Attachment: Destination Master Plan (10349 : Visit Fort Collins Destination Master Plan D IRECTION /STEPS Creative Community 1.1 Packet Pg. 48 Attachment: Destination Master Plan (10349 : Visit Fort Collins Destination Master Plan A CTION On-going Actions: Continue growth of event options in Fort Collins while expanding the focus into visitor producing opportunities. I NSTIGATORS City of Fort Collins, Event Producers, Visit Fort Collins Ties To: Branding Talent 2.0 Quality of Place Creative Community Actions for Years Three & Four: •Implement and implant the brand through everything o Everyone! Actions for Years One & Two: •Research the image of the Pride of Place o VFC leads o Integrate through committee •Develop the creative translation o VFC leads o Integrate through committee •Configure culturalization plan o CFC & Chamber leads o Integrate through committee 1.1 Packet Pg. 49 Attachment: Destination Master Plan (10349 : Visit Fort Collins Destination Master Plan Essence of Fort Collins Defining the elements that create and bolster the pride of place to deliver a Fort Collins lifestyle. S TRATEGIC C ONCEPT I NPUTS TO U NDERSTAND C URRENT /FUTURE P OTENTIAL N EEDS •Visitor profile activity research •Social media engagement •Conversations with hospitality leaders and employees •Display the Attractor/Attractions data •Extend the research to build experiential scenarios and highlights 1.1 Packet Pg. 50 Attachment: Destination Master Plan (10349 : Visit Fort Collins Destination Master Plan R ESEARCH Essence of Fort Collins The Lifestyle of Fort Collins The culture we are The lifestyle components that help define Fort Collins •Rams Colorado State University •Liquid Arts Breweries/Distilleries •Music Bands/Venues •Outdoors Parks/Scenic Beauty •Recreation Biking/Rafting/Hiking •Downtown Retail/Charm/Dining •Innovative Entrepreneurial/Tech •Leadership Engaged & Recognized 1.1 Packet Pg. 51 Attachment: Destination Master Plan (10349 : Visit Fort Collins Destination Master Plan D IRECTION /STEPS Essence of Fort Collins 1.1 Packet Pg. 52 Attachment: Destination Master Plan (10349 : Visit Fort Collins Destination Master Plan A CTION On-going Actions: Continue growth of event options in Fort Collins while expanding the focus into visitor producing opportunities. Year One-Two Actions: Year Three-Four Actions: I NSTIGATORS City of Fort Collins, Event Producers, Visit Fort Collins Ties To: Branding Talent 2.0 Quality of Place Essence of Fort Collins 1.1 Packet Pg. 53 Attachment: Destination Master Plan (10349 : Visit Fort Collins Destination Master Plan Configuring Events Constructing a sustainable approach for leveraging tourism producing events. S TRATEGIC C ONCEPT I NPUTS TO U NDERSTAND C URRENT /FUTURE P OTENTIAL N EEDS •Calendar of needs •Role of venue and event space •Building event planning tools •Determining leadership role •Balancing event fatigue with event opportunity •Balancing return on quality of life with return on business impact •Balancing costs of safety & services with event success 1.1 Packet Pg. 54 Attachment: Destination Master Plan (10349 : Visit Fort Collins Destination Master Plan R ESEARCH Configuring Events 1.1 Packet Pg. 55 Attachment: Destination Master Plan (10349 : Visit Fort Collins Destination Master Plan D IRECTION /STEPS Configuring Events 1.1 Packet Pg. 56 Attachment: Destination Master Plan (10349 : Visit Fort Collins Destination Master Plan A CTION On-going Actions: Continue growth of event options in Fort Collins while expanding the focus into visitor producing opportunities. Year One-Two Actions: Year Three-Four Actions: I NSTIGATORS City of Fort Collins, Event Producers, Visit Fort Collins Ties To: Branding Talent 2.0 Quality of Place Configuring Events 1.1 Packet Pg. 57 Attachment: Destination Master Plan (10349 : Visit Fort Collins Destination Master Plan Embracing the Nighttime Economy Cities that build 18-hours of activity offerings require action teams that plan for engagement, assure safe environs, and enhance vibrancy. C ONCEPT N EEDS I NPUTS TO U NDERSTAND C URRENT /FUTURE P OTENTIAL •Density and interconnectivity of experiences •Key elements/shifts in forming nighttime options •Organizational & regulatory guidance from FCPD •Illustrate the trends of nighttime activity •Create a potential structure for implementation •Construct the value and needs associated with the timeframe •Connect to Music City initiatives 1.1 Packet Pg. 58 Attachment: Destination Master Plan (10349 : Visit Fort Collins Destination Master Plan R ESEARCH Embracing the Nighttime Economy 1.1 Packet Pg. 59 Attachment: Destination Master Plan (10349 : Visit Fort Collins Destination Master Plan D IRECTION /STEPS Embracing the Nighttime Economy 1.1 Packet Pg. 60 Attachment: Destination Master Plan (10349 : Visit Fort Collins Destination Master Plan A CTION On-going Actions: Continue growth of event options in Fort Collins while expanding the focus into visitor producing opportunities. Year One-Two Actions: Year Three-Four Actions: I NSTIGATORS City of Fort Collins, Event Producers, Visit Fort Collins Ties To: Branding Talent 2.0 Quality of Place Embracing the Nighttime Economy 1.1 Packet Pg. 61 Attachment: Destination Master Plan (10349 : Visit Fort Collins Destination Master Plan Connecting for Talent Joining the destination invitation with efforts to attract, retain and flourish prospective employees of all types. S IGNATURE L INK I NPUTS TO ESTABLISH LINK S TEPS •Talent 2.0 Regional Workforce Strategy •Conversations with economic development and business leaders •Build the Community Connections strategy detail •Drive involvement from primary employers •Connect to overcome related community issues •Construct hospitality workforce ideas 1.1 Packet Pg. 62 Attachment: Destination Master Plan (10349 : Visit Fort Collins Destination Master Plan Including our Community Empowering the greatest asset of Fort Collins, our people. S TRATEGIC T HEME I MPORTANCE •Tap the expertise and talent base within Fort Collins •Consider four populations: •Residents •Commuter workforce •Students •Visitors •Leverage local culture by understanding the people that shape the culture 1.1 Packet Pg. 63 Attachment: Destination Master Plan (10349 : Visit Fort Collins Destination Master Plan Leveraging Community Connections Canvasing community, corporate & campus leaders to expand group business. S TRATEGIC C ONCEPT I NPUTS TO U NDERSTAND C URRENT /FUTURE P OTENTIAL R EMAINING S TEPS •Analysis of Visit Fort Collins database •Conversations with business community •Conversations with VFC staff •Assess the potential market •Develop the promotional system •Prioritize the partners needed for success 1.1 Packet Pg. 64 Attachment: Destination Master Plan (10349 : Visit Fort Collins Destination Master Plan Leveraging Community Connections R ESEARCH Business / college-related visitors Average of 3.2 nights (median of 3 nights) Party size of 3.1 people (median of 2) 27% first time visitors (73% repeat visitors) Top activities: •Dining out (71%) •Downtown Fort Collins (65%) •Shopping (50%) •Visit breweries (35%) •General sightseeing (33%) •Hiking /climbing (28%) •Horsetooth/water activities (25%) (fewer activities overall compared to general vacation) 1.1 Packet Pg. 65 Attachment: Destination Master Plan (10349 : Visit Fort Collins Destination Master Plan Leveraging Community Connections R ESEARCH 1.1 Packet Pg. 66 Attachment: Destination Master Plan (10349 : Visit Fort Collins Destination Master Plan Leveraging Community Connections D IRECTION /STEPS a.Construct sales program •Local market contacts o Work current list of connections o Add more individuals to the list •Assemble examples and testimonials •Relationship building programs •Tool kits and incentives •Objectives & Metrics for success b.Widen asset inventory •Current topical areas o Who are the local corporations & individuals? o What do they produce or know that could be useful? o Specs for events •Tapped versus untapped o Does VFC have a working relationship already? •Build section with detail in CRM 1.1 Packet Pg. 67 Attachment: Destination Master Plan (10349 : Visit Fort Collins Destination Master Plan Connecting Priorities to Leadership Configuring Events Supporting the needs of the Nighttime Economy Branding Pride of Place Expanding Basecamp: Fort Collins Leveraging Community Connections Funding the Future Harnessing the Essence of Fort Collins Investing in Quality of Place Improving Gateways & Corridors Fostering Creative Community Fort Collins Hotels MULTIPLE LEADERS Expecting Inclusion Connecting Talent 2.0 Responding to Community Issues Encouraging Aspirational Concepts Fort Collins community partners 1.1 Packet Pg. 68 Attachment: Destination Master Plan (10349 : Visit Fort Collins Destination Master Plan Encouraging Aspirational Concepts Challenging community thinking for big, audacious innovations that further define the Fort Collins brand. S TRATEGIC C ONCEPT I NPUTS TO U NDERSTAND C URRENT /FUTURE P OTENTIAL R EMAINING S TEPS •Conversations with community stakeholders •Gather input from city leadership •Align a list of possible options •Prioritize options 1.1 Packet Pg. 69 Attachment: Destination Master Plan (10349 : Visit Fort Collins Destination Master Plan R ESEARCH Encouraging Aspirational Concepts 1.1 Packet Pg. 70 Attachment: Destination Master Plan (10349 : Visit Fort Collins Destination Master Plan D IRECTION /STEPS Encouraging Aspirational Concepts 1.1 Packet Pg. 71 Attachment: Destination Master Plan (10349 : Visit Fort Collins Destination Master Plan A CTION On-going Actions: Continue growth of event options in Fort Collins while expanding the focus into visitor producing opportunities. Year One-Two Actions: Year Three-Four Actions: I NSTIGATORS City of Fort Collins, Event Producers, Visit Fort Collins Ties To: Branding Talent 2.0 Quality of Place Encouraging Aspirational Concepts 1.1 Packet Pg. 72 Attachment: Destination Master Plan (10349 : Visit Fort Collins Destination Master Plan Next Steps 1.1 Packet Pg. 73 Attachment: Destination Master Plan (10349 : Visit Fort Collins Destination Master Plan Next Steps •Detail out remaining Themes, Links and Priorities •Add more details, examples and images •Reconnect to all objectives especially: •Business Development •Triple Bottom Line •Community Issues March April May Planning Timeline •Details for: •SUSTAINING OUR COMMUNITY o Fostering Creative Community o Harnessing the essence of Fort Collins o Configuring Events o Supporting the needs of the Nighttime Economy •Talent 2.0 •INCLUDING OUR COMMUNITY •Leveraging Community Connections •Encouraging Aspirational Concepts •Confirmation •Detail Building •Report crafting •Presenting 1.1 Packet Pg. 74 Attachment: Destination Master Plan (10349 : Visit Fort Collins Destination Master Plan © 2019, Jones Lang LaSalle Americas, Inc. All rights reserved. 1.1 Packet Pg. 75 Attachment: Destination Master Plan (10349 : Visit Fort Collins Destination Master Plan Rebuilding For Resiliency A PATH FORWARD FOR VISIT FORT COLLINS Draft for Review -May 2021 ATTACHMENT 2 1.2 Packet Pg. 76 Attachment: Destination Recovery Plan (draft) (10349 : Visit Fort Collins Destination Master Plan and VI SIT FORT COLLINS: REBUILDING FOR RESILIENCY | PAGE 2 Secure Competitive Funding Without competitive funding,recovery actions to build market will be severely compromised. Leverage Brand Promise Building on the brand promise of Fort Collins establishes an emotional bond between residents and guests. TABLE OF C ONTENTS Executive Summary page 3 Strategies and Tactics page 8 Develop Community Connections Meetings and conferences will come back more slowly than youth sports and leisure,but destinations that rebuild group business from within will prosper more rapidly and be more resilient in the long-term. Visit Fort Collins plays an active role in helping the community navigate its way through recovery from the impacts of COVID-19.The strategic recommendations for action fall into four areas,each with ties to the Destination Master Plan. Re -examining the Destination page 5 Actions that Contribute to the Community's Recovery page 15 Differentiate Basecamp Fort Collins Leisure markets and youth sports will be the first facet of tourism rebuilding. Fort Collins will attract more leisure travel by marketing its unique character and leveraging its proximity to regional attractions. Appendix: Stakeholder Participation page 17 1.2 Packet Pg. 77 Attachment: Destination Recovery Plan (draft) (10349 : Visit Fort Collins Destination Master Plan and To capitalize on pent-up demand for travel and to rebuild the city’s tourism and hospitality programming, Visit Fort Collins engaged with Clarity of Place to identify ways to begin the recovery and identify ways to make the sector more resilient and increase the ability to weather external shocks and global changes to travel behavior. The results of those efforts are summarized in this strategic recovery report.Rebuilding for Resiliency identifies areas where Visit Fort Collins should quickly reposition efforts to advance existing programming to capture greater shares of leisure and business travel as COVID-19 induced regulations around gathering lessen and confidence in travel grows.It also looks at ways to re-start implementation of the city’s Destination Master Plan and evolve those recommendations to address changes in travel behavior. Just as addressing the impacts of COVID-19 required collaboration among all within the city, supporting the recovery and rebuilding of Fort Collins as a destination will be a team effort. Along with identifying key initiatives where Visit Fort Collins must act to encourage and assist the comeback of visitors, Rebuilding for Resiliency recommends areas in which the organization should lend support to others to nurture the recovery of the community and its quality of place as a whole. VISIT FORT COLLINS: REBUILDING FOR RESILIENCY |PAGE 3 The businesses that make up Fort Collins’ tourism and hospitality sector continue to suffer from the negative impacts of the closures and changed travel behavior sparked by COVID-19. Despite a brief boost in overnight business resulting from resident displacement during wildfires in the summer of 2020, as the city enters the Summer 2021 travel season, overnight stays and visitor spending in the city continues to be at only a fraction of previous years’ levels given the lack of events, challenges to in-person classes and activities at Colorado State University and substantial decreases in business travel. Executive Summary 1.2 Packet Pg. 78 Attachment: Destination Recovery Plan (draft) (10349 : Visit Fort Collins Destination Master Plan and VISIT FORT COLLINS: REBUILDING FOR RESILIENCY |PAGE 4 BUILDING ON A STRONG BASE In 2019, The City of Fort Collins and Visit Fort Collins partnered to develop a Destination Master Plan which identified ways Visit Fort Collins could encourage greater levels of visitation and increase visitor spending.The Plan sought to leverage the activity and draw of Colorado State University,the city’s dynamic corporate base, and its proximity to Rocky Mountains National Park, as well as signature events and the city’s burgeoning entertainment scene. The Plan examined how Fort Collins compares to other destinations and uncovered that funding levels for Visit Fort Collins were at a comparative disadvantage to competitor communities across Colorado. The implications of its lack of robust funding was that Visit Fort Collins’marketing and programming efforts could not be as targeted as those of competitor destinations and that there were few resources for programming to engage and connect the city’s tourism and hospitality infrastructure. With the onset of the COVID-19 pandemic and forced closures in March of 2020, Visit Fort Collins was forced to place implementation of the Destination Master Plan on hold and stepped in to help the community of Fort Collins proactively build support for local restaurants, retailers, and other businesses devastated by the effects of significant declines in resident and visitor demand. 2020 DESTINATION MASTER PLAN:KEY FINDINGS Community connections facilitate an avenue for group business growth >Talent retention and attraction provides connective fiber across multiple strategies >Maintaining quality venues & park assets provides a gateway for new opportunities > >Visit Fort Collins funding level is not competitive >Fort Collins can leverage the brand promise of its collaborative, sharing nature 1.2 Packet Pg. 79 Attachment: Destination Recovery Plan (draft) (10349 : Visit Fort Collins Destination Master Plan and VISIT FORT COLLINS: REBUILDING FOR RESILIENCY |PAGE 5 To understand what Visit Fort Collins must do to help the city's economy recover, Clarity of Place reexamined Fort Collins' competitiveness as a destination in three different areas –Input/Trends,Challenges, and Opportunities.This will allow Visit Fort Collins to build its recovery efforts given changes in the local market, as well as leveraging changes externally—either in competitive markets or in travel behavior. Input/Trends To understand the effect of the COVID closures and changes to travel behavior as a result on Fort Collins,Clarity of Place examined: •Traveler Sentiment -Monitoring traveler sentiment allows Visit Fort Collins to understand when travelers are ready to return and when residents are ready to welcome them. •Leisure growth -Pent-up demand is driving interest in leisure and youth sports. Competition is intense for these market segments, as it now includes destinations that would normally focus on meetings and conventions. Service challenges arise as businesses seek to refill front-line positions. Re-examining the Destination •Hotel performance -Inventory growth across the region creates a more competitive marketplace. Hotels are seeing variances in the pace of recovery as rate competition creates different value points for the consumer. In addition to the above trends, the advantages Fort Collins possessed as being a top university city became a challenge during COVID as a large source of demand for the city's visitor facing businesses were sent home.Likewise,as businesses transitioned to work-from-home policies, and eliminated non-essential business travel, lodging and other visitor-facing businesses felt the impact. Challenges As Visit Fort Collins begins to refocus its marketing and programing to prompt the destination’s recovery,the organization must address and mitigate a number of challenges specific to Fort Collins as a destination: •Funding:The Destination Master Plan 1.2 Packet Pg. 80 Attachment: Destination Recovery Plan (draft) (10349 : Visit Fort Collins Destination Master Plan and VISIT FORT COLLINS: REBUILDING FOR RESILIENCY |PAGE 6 identified that Visit Fort Collins is on the lower end of the spectrum in terms of organizational funding.The lack of funds to fine-tune marketing campaigns and take advantage of the market segments that are returning first is even more pronounced in the recovery. •Competition for overnight stays:With the return of leisure travel before group or business travel re-starts, Visit Fort Collins must compete with a larger group of destinations to attract visitors to the city. •Increased lodging inventory in the region: Fort Collins has a strong mix of lodging properties that appeal to a broad mix of visitor audiences. The refocused visitor marketing campaigns needs to be positioned to drive overnight stays to all types of lodging properties. •Community involvement: Prior to the pandemic,one of Fort Collins' strongest assets was the deep sense of community pride held by its residents and visitor-facing businesses.As Visit LEVERAGE EVENTS AND LOVE OF PLACE Use the Fort Collins' distinct personality and visitor offerings to encourage leisure visits Fort Collins works to rebuild sustainable visitor business,it needs to be aware of the local tolerance for "opening"too soon and aware of resident sentiment towards tourism in the post-pandemic environment. Opportunities The Destination Master Plan identified some significant strengths in the Fort Collins visitor experience.As it looks to help the city recovery, Visit Fort Collins can leverage these strengths to drive re-ignited visitor interest and encourage sustainable levels of visitors during the recovery period and as travel confidence (and resident acceptance of visitors) stabilizes. Recovery will require interaction with demand drivers in innovative and non-traditional ways to differentiate Fort Collins as a destination. The social unrest that occurred across the country during the summer of 2020 highlighted the need for a greater emphasis on the importance of Diversity,Equity and Inclusion (DEI) in all community aspects. Visit Fort Collins can leverage the community's love of place and welcoming nature to demonstrate the destination and community's commitment to DEI principles. QUALITY AND SUSTAINABILITY In efforts to rebuild revenue/activity lost because of the pandemic,keep the city's long-term sustainability in mind ADD STRATEGIC TARGETING As funds allow,add strategic,targeted marketing to leisure visitor audiences that are most likely to be converted into visitors and that will not overly tax the city's hospitality infrastructure as the travel market rebuilds. KEY RECOVERY OPPORTUNITIES 1.2 Packet Pg. 81 Attachment: Destination Recovery Plan (draft) (10349 : Visit Fort Collins Destination Master Plan and VISIT FORT COLLINS: REBUILDING FOR RESILIENCY |PAGE 7 - 21% Hotel Demand According to STR (a data provider for global hospitality sectors) over the course of 2020 hotel demand in Fort Collins dropped by 31% compared to 2019.This drop erased the progressive growth in demand established over the previous six years. - 31% COVID -19 IMPACT AND RESPONSE COVID-19 caused shifts in operations such as virtual classes at Colorado State University,gathering limitations for fall football games and other events.The overall decline in traveler demand dramatically impacted the Fort Collins hospitality industry.Despite seeing an up-tick in leisure travel as restrictions eased in the Summer of 2020 and as travelers looked for outdoor activities like those the city has to offer, lodging properties in the city suffered a severe decline in performance. The inability to host and organize events not only negatively impacted overnight stays to Fort Collins, but also caused the city's primary event development organization,the Downtown Business Association,to pause and alter its operations. In addition to turning its marketing efforts inward to encourage residents to support local businesses as much as possible given the closures, Visit Fort Collins seized the moment and created an online "marketplace" to allow shoppers to access and buy locally-made products. The organization received national publicity for the innovation and ease of the Fort Collins Marketplace.Nevertheless,Visit Fort Collins'marketing impact will remain limited until travel confidence returns. Festivals and Events Fort Collins is known for its signature events, such as Tour de Fat and Colorado State University Rams football games. All signature events were canceled in 2020 Historically, participants and spectators at these activities spend in the city during their stay. In the absence of such events,net taxable sales in the entire downtown area were down 9% in 2020. Downtown College Corridor CSU was forced to transition to virtual classes for a substantial period during the pandemic. In large part due to the absence of student activity/demand, net taxable sales within the downtown College Corridor were down 21% according to the City of Fort Collins. All Canceled 1.2 Packet Pg. 82 Attachment: Destination Recovery Plan (draft) (10349 : Visit Fort Collins Destination Master Plan and VISIT FORT COLLINS: REBUILDING FOR RESILIENCY |PAGE 8 ENSURING SAFETY FOR ALL As a community partner, Visit Fort Collins immediately pivoted to facilitating critical communication to our residents, businesses and visitors. Daily updates were provided from state, county, and city resources, recognizing health and safety was the first priority. In April 2020 Visit Fort Collins created a safety pledge. This information was hosted on our website and in conjunction with our hotel teams to instill a common goal and knowledge base for how to navigate our community safely. Additional components were added to enhance safety as guidelines changed in a near constant manner. QR Codes were added to our visitor guides to link users immediately to local health guidelines and business capabilities. It included information on hours,curbside or pick up options, recreation and retail operations. QR Codes were also distributed for display to all hotel partners to assist front desk personnel with contactless information, again keeping working residents and visitors safe. FoCo ToGo was added to the list highlighting business who were operating and how to best access their services. Ensuring our residents and hospitality sector employees are safe will continue to be front and center in all strategic actions and as an integral component of the Destination Recovery Plan. Health officers and medical professionals throughout the state,county, and city are addressing and updating safety programs and support on an ongoing basis. Visit Fort Collins will continue to stay informed with these measures and act as a resource for disseminating those messages, to both visitors, hospitality partners, and the community. 1.2 Packet Pg. 83 Attachment: Destination Recovery Plan (draft) (10349 : Visit Fort Collins Destination Master Plan and VISIT FORT COLLINS: REBUILDING FOR RESILIENCY |PAGE 9 Strategies and Tactics This Destination Recovery Plan is meant to provide a clear direction for Fort Collins to rapidly regain lost ground across the tourism- related economy and emerge as a more strategic and sustainable destination. The primary goal of the recovery plan is to give Visit Fort Collins immediate and short-term actions that will continue to support the destination and community in its recovery from the impact of the pandemic and return to its growth trajectory.. Additionally,the destination strategic recovery plan identifies ways that Visit Fort Collins can adjust implementation tactics of its longer-range Destination Master Plan to position the city to be more competitive and resilient given the changes in travel behavior and the even greater competition to attract visitors of all types. The plan is built around three guiding principles to ensure that Fort Collins as a travel destination will emerge stronger from the COVID crisis and continue to contribute to the city’s overall recovery. GUIDING PRINCIPLES Hone marketing and programs to encourage the return of visitors by placing destination partners and service providers at the heart of destination recovery; Communicate Fort Collins’ commitment to safety for residents, community members,and visitors as the city reopens and recovers; Build a foundation for resiliency— adjust strategic initiatives to make Fort Collins less vulnerable to external shocks. 1.2 Packet Pg. 84 Attachment: Destination Recovery Plan (draft) (10349 : Visit Fort Collins Destination Master Plan and VISIT FORT COLLINS: REBUILDING FOR RESILIENCY |PAGE 10 Strategy 1: SECURE COMPETITIVE FUNDING Without competitive funding,recovery actions will reflect pandemic impacted revenues and take longer to positively influence recovery. The competitive funding disparity became more pronounced during COVID-related closures when Visit Fort Collins needed the resources to nimbly adapt to the rapid changes in competitive market dynamics." The Destination Master Plan recommended that Visit Fort Collins explore the creation of a Fort Collins Tourism Improvement District (FCTID)to add a tourism benefit assessment to hotels and overnight accommodations. The funds raised from the assessment will be spent to provide marketing and sales support for hotels within the district. Recovery Challenge:The changes in travel behaviors due to COVID-19 highlighted the need for a nimble response to stay focused on targets that fill market needs. During 2020, other Colorado destinations in resort locales maintained their business volume levels during the pandemic and in some cases grew business volume by targeting specific audiences with a proclivity towards leisure travel during the pandemic. To ensure that Visit Fort Collins has ample marketing resources to create targeted and customized campaigns to take advantage of increased leisure travel demand going forward, acceptance of the FCTID is even more critical. Response Action:To ensure it has adequate budget to deliver targeted marketing to leisure travel in the short term and to expand and prepare for group and business travel when those markets return, Visit Fort Collins should continue to advocate for passage of the FCTID and solidify hotel support. Specifically,the organization should: •Describe projected benefit of increased investments in tourism marketing and programming to hotel and lodging partners •Act with sense of urgency for rebuilding sustainable destination business. 1.2 Packet Pg. 85 Attachment: Destination Recovery Plan (draft) (10349 : Visit Fort Collins Destination Master Plan and VISIT FORT COLLINS: REBUILDING FOR RESILIENCY |PAGE 11 •Continue the visitor marketing plan for leisure and group sales that will benefit the participating properties and encourage greater levels of overnight visits. •Continue to advocate for FCTID approval by hoteliers. How the FCTID Will Work 1.City of Fort Collins authorized the legislation to create a FCTID (completed) 2.Hotel leaders are in the process of creating a governing board for the FCTID 3.Hotels in the city must agree to place their properties in the FCTID and be assessed the fee. As of the publication of this report (May 2021), several have done so. 4.Fort Collins is developing a plan for using the additional funds;the plan will show how the hotels/ businesses that are assessed the fee will benefit 5.The governing board approves the plan and contracts Visit Fort Collins to carry it out. 1.2 Packet Pg. 86 Attachment: Destination Recovery Plan (draft) (10349 : Visit Fort Collins Destination Master Plan and VISIT FORT COLLINS: REBUILDING FOR RESILIENCY |PAGE 12 Strategy 2: DIFFERENTIATE BASECAMP FORT COLLINS Leisure travelers will be the first to return.Visit Fort Collins should continue to market its unique character and proximity to regional attractions to prompt travel decisions. Prior to the pandemic, the existing "Basecamp: Fort Collins" concept helped position the area as a hub for recreational activities, craft beverages, and leisure outings.Itinerary-based marketing helped to encourage visitor interaction and spending throughout the city. Recovery Challenge: As leisure travel ramps up with openings post-COVID-19 and travel confidence increases, more destinations will be marketing themselves as the ideal vacation location. Visit Fort Collins can better its chances of creating interest and capturing a greater share of the leisure visitors by coupling the convenience of the city's proximity to regional attractions with signature events and a broad range of visitor offerings within the city. The combination of great location coupled with a variety of authentic visitor experiences experience will set Fort Collins apart as a basecamp where the visitor can have it "all."The basecamp concept allows Visit Fort Collins to build around regional outdoor recreation assets and layer in other experiences. Additionally, the concept can be redeployed weekly to include updates on activities and options. This "hook" allows Visit Fort Collins to position Basecamp as an active, evolving experience versus a more static hub and spoke itinerary. Response Action: Creating and enlisting the help of destination partners to make the Fort Collins visitor experience appeal more deeply to various leisure travelers will require a more resource-intense campaign than merely itinerary-based marketing. To implement the elevated basecamp strategy and differentiate "Basecamp:Fort Collins,"Visit Fort Collins should: •Develop an implementation plan around weekly offerings scheduled for the remainder of calendar year 2021 and in 2022. The implementation plan should include ways to connect the event-based 1.2 Packet Pg. 87 Attachment: Destination Recovery Plan (draft) (10349 : Visit Fort Collins Destination Master Plan and VISIT FORT COLLINS: REBUILDING FOR RESILIENCY |PAGE 13 itineraries to the key drive markets. It should also include methods to reach the targeted leisure audiences. •Expand the role of the visitor center and Visit Fort Collins staff to include enhanced visitor interaction to support lodging and other hospitality service providers. •Assemble and enlist destination partners to create and deliver experiences that allow the visitor to participate in an authentic aspect of the city while not over-taxing resources/staff. •Encourage sports planners to utilize the Basecamp concept as they plan and host youth sporting events within the Fort Collins area Timing •Visit Fort Collins will work with the producers of signature, visitor-facing events to optimize with community needs and opportunities. •Visit Fort Collins will continue to reach out to destination partners to introduce the marketing plan and identify ways the individual destination partner can contribute to the visitor experience. •Visit Fort Collins will identify additional roles and responsibilities for team members to help execute/enhance visitor experiences once in the destination. Needed Partners •Destination partners to build immersive experiences •Event producers to host events following new gathering protocols •City of Fort Collins Event Services to help enhance the event optimization. 1.2 Packet Pg. 88 Attachment: Destination Recovery Plan (draft) (10349 : Visit Fort Collins Destination Master Plan and VISIT FORT COLLINS: REBUILDING FOR RESILIENCY |PAGE 14 Strategy 3: DEVELOP COMMUNITY CONNECTIONS Meetings and conferences will come back more slowly than leisure, but destinations that rebuild group business from within will prosper more rapidly and be more resilient in the long-term Preparation for the return of group gatherings needs to begin during recovery as sports bookings will continue to grow while meetings and conferences slowly re-emerge. Recovery Challenge:Local contacts and connections are essential for facilitating conference,sporting event,and corporate and academic meeting bookings in Fort Collins. The Destination Master Plan recommended leveraging connections in the community to better Visit Fort Collins chances of recruiting such events. With competition for pursuing these activities heightened as destinations attempt to recover from the effects of 2020 and adapt to new meeting requirements,active prospecting and relationship building must be the priority of Visit Fort Collins and hotel partners. Response Action: To proactively engage meeting and sports planners as they consider scheduling events in the post pandemic travel environment,Visit Fort Collins should: •Develop a contact referral program to build local connections to boards of directors and organizations,identify meetings or events in which the contact is engaged,and solicit the contact's help in making the case for Fort Collins as an ideal location for the event; •Utilize an in-progress Pilot Program with a dedicated, third-party call center to consistently reach targeted and qualified meeting and sports planners and invite them to consider Fort Collins. •Follow-up with vetted leads identified by the third-party call center firm. •Develop a partner integration plan to encourage hotel involvement around leads related to the business transient market. Needed Partners •Corporate representatives who are responsible and have interest in supporting business travel to Fort Collins. •Community leaders, corporate citizens, and Colorado State University faculty and staff to identify potential meeting or event leads. •Greater Fort Collins Chamber of Commerce and local business leaders to facilitate business connections, introductions, and networks. 1.2 Packet Pg. 89 Attachment: Destination Recovery Plan (draft) (10349 : Visit Fort Collins Destination Master Plan and VISIT FORT COLLINS: REBUILDING FOR RESILIENCY |PAGE 15 Strategy 4: LEVERAGE BRAND PROMISE Building on the brand promise of Fort Collins establishes an emotional bond between residents and guests Fort Collins residents and businesses possess a natural and easy-going disposition for sharing their love for Fort Collins.This trait was apparent during the creation of the Destination Master Plan and was manifested more as the community came together to support visitor service providers when travel demand dropped. Encouraging residents to exude the character and culture of the destination in the minds of potential visitors are effective motivators when considering a visit. Recovery Challenge: Authentic branding helps elevate destination awareness and interest.Similar to augmenting the Basecamp concept with events and experiences that allow visitors to experience an authentic Fort Collins experience, the deep love of place of the city's residents and businesses can serve as a way to set visits to Fort Collins apart. Connecting to the city's love of place has the associated benefit of including all hospitality and service businesses in the recovery efforts. Response Action:To further differentiate a visit to Fort Collins and harness the passion of residents and businesses around the strong quality of place the city exudes, Visit Fort Collins should: •Translate the city's brand promise into an evocative look and feel by engaging a marketing agency to interpret Fort Collins' brand promise. •Assemble brand icons or individual local ambassadors who are engaged in various aspects of the community to personify the Fort Collins’“sharing the love” passion. •Integrate the developed brand promise into all messaging, marketing, & operations. •Encourage businesses and destination partners to adopt the brand promise and assimilate it into their marketing where appropriate. Timing •Visit Fort Collins should contract with a marketing agency to translate the community's identified brand promise into messaging and collateral that describe it. •Visit Fort Collins should develop a new marketing campaign that includes the messaging and identified imagery •Visit Fort Collins should share the messaging and developed brand promise concept with destination partners and encourage them to adopt and utilize wherever possible. Needed Partners •Destination partners to adopt and integrate the brand promise concept (and messaging and imagery where appropriate) into their marketing and messaging. 1.2 Packet Pg. 90 Attachment: Destination Recovery Plan (draft) (10349 : Visit Fort Collins Destination Master Plan and VISIT FORT COLLINS: REBUILDING FOR RESILIENCY |PAGE 16 Visit Fort Collins is the official destination marketing organization for Fort Collins and is responsible for marketing Fort Collins to travelers from around the world.In addition to the focused strategies and tactics outlined above to encourage increased visitation and help the city's tourism and hospitality sector recover,Visit Fort Collins should also support activities in the medium-and long-term that help other areas of the community rebuild.Rebuilding the entire Fort Collins community is important as it will strengthen the city's quality of place and ensure that Fort Collins remains a competitive destination for visitors,talent,and residents. Actions that Contribute to the Community's Recovery Creative Community The negative impact to creative providers requires many organizations to help with recovery.Visit Fort Collins will serve as a resource to this group and will support initiatives that contribute to the recovery of the creative community Visitor -facing Business Segments Recovery looks different for each business segment based on their needs. Visit Fort Collins will remain attuned to challenges faced by each segment and lend support where appropriate. Configuring Events Events will continue to be important activities for the city.Visit Fort Collins will work with destination partners to reposition events to better support community needs, seasonality, and sustainability. 1.2 Packet Pg. 91 Attachment: Destination Recovery Plan (draft) (10349 : Visit Fort Collins Destination Master Plan and VISIT FORT COLLINS: REBUILDING FOR RESILIENCY |PAGE 17 Stakeholder Participation During the course of this engagement,Clarity of Place benefited from the insights and input from a diverse group of Visit Fort Collins's stakeholders.The individuals listed below gave of their time and energies to provide feedback on the contents of this plan. •Gary Ozzello, Board Chair, Director of • University Relations, Canvas Credit Union •Molly Skold, Executive Board, Vice President Marketing and Communications,Campus Realty •Kate Cooper,Executive Board,Director of Events and Community Involvement, Ginger &Baker •Daylan Figgs,Director Larimer County Natural Resources,Larimer County •Jennifer Wright, Manager of Special Projects and Executive Support,Colorado State University •Sandra Fredrickson, General Manager, Marriott Fort Collins •George Pine,General Manager,The Armstrong •Chris Ashby,Director,The Ranch,Larimer County •Abbie Stout,Owner,The Edwards House Bethany Cloud,Tap Room Manager, Odell • Brewing Company Daniel Benton, General Manager, Hilton • Fort Collins • •Lauren Gleason,Director of Events and Conference Services,Colorado State University •Sean Godbey, Owner, Old Town Spice Shop •Amanda King,Communications and Public Involvement, City of Fort Collins •Matt Robenalt,Executive Director, Downtown Development Office •Katy Schneider,Director of Marketing, Visit Fort Collins •Erik Barstow,Director of Sales,Visit Fort Collins •Justin Koroneos,Partnership Manager, Visit Fort Collins •Drew Southers,Colorado Welcome Center Lead,Visit Fort Collins Melissa Draxler, Executive Assistant and Office Manager,Visit Fort Collins Taylor Grummert, Downtown Visitor Information Center Lead,Visit Fort Collins •SeonAh Kendall,City Recovery Manager, City of Fort Collins •Ginger Graham,Owner, Ginger &Baker •John Williams,SVP Industrial &Medical & Global Services,Advanced Energy •Cheryl Zimlich,Executive Director, Bohemian Foundation •Jim McDonald,Director,Cultural Services, City of Fort Collins •Ann Hutchinson, President & CEO, Fort Collins Area Chamber of Commerce •Mike Hooker,Director,Media Relations & Denver Outreach 1.2 Packet Pg. 92 Attachment: Destination Recovery Plan (draft) (10349 : Visit Fort Collins Destination Master Plan and May 2021 www.clarityofplace.com 1.2 Packet Pg. 93 Attachment: Destination Recovery Plan (draft) (10349 : Visit Fort Collins Destination Master Plan and 201720182019202020212021 over/ under 20202017-2021JAN79,597.00$ 101,000.00$ 136,670.00$ 133,029.00$ 76,463.00$ -42.5%$450,296.00FEB72,367.00$ 84,000.00$ 92,474.00$ 91,951.00$ 48,774.00$ -47.0%$340,792.00MAR80,606.00$ 85,000.00$ 87,042.00$ 99,669.00$ 55,481.00$ -44.3%$352,317.00APR98,356.00$ 114,000.00$ 152,919.00$ 62,987.00$ 93,453.00$ 48.4%$428,262.00MAY103,539.00$ 118,000.00$ 132,354.00$ 20,049.00$ -100.0%$373,942.00JUN138,868.00$ 161,000.00$ 174,588.00$ 26,717.00$ -100.0%$501,173.00JUL179,706.00$ 226,000.00$ 227,780.00$ 68,002.00$ -100.0%$701,488.00AUG174,399.00$ 207,000.00$ 241,809.00$ 91,000.00$ -100.0%$714,208.00SEP184,716.00$ 201,000.00$ 209,336.00$ 118,310.00$ -100.0%$713,362.00OCT172,270.00$ 212,000.00$ 220,543.00$ 116,566.00$ -100.0%$721,379.00NOV143,977.00$ 169,100.00$ 172,206.00$ 139,231.00$ -100.0%$624,514.00DEC92,164.00$ 115,000.00$ 99,000.00$ 53,743.00$ -100.0%$359,907.00TOTAL1,520,565.00$ 1,793,100.00$ 1,946,721.00$ 1,021,254.00$ 274,171.00$ -73.2%$1,520,565.00CITY OF FORT COLLINSLODGING TAX COLLECTIONSC:\Users\aking\AppData\Local\Microsoft\Windows\INetCache\Content.Outlook\U15XOWY4\Lodging Tax Collections YTD April 2021.xlsxATTACHMENT 31.3Packet Pg. 94Attachment: Lodging Tax Collections YTD April 2021 (10349 : Visit Fort Collins Destination Master Plan ROCKY MOUNTAIN LODGING REPORT Colorado Edition December 2020 2020 YEAR-TO-DATE 2019 YEAR-TO-DATE ROOM NIGHTS OCC OCC OCC LOCATION AVAILABLE OCCUPIED % ADR REVPAR % ADR REVPAR % ADR REVPAR DENVER 1,146,539 379,428 33.1% $84.04 $27.81 41.7% $104.53 $43.60 74.3% $146.14 $108.64 COLORADO SPRINGS LEVEL 1 105,493 33,170 31.4% $95.28 $29.96 45.1% $109.13 $49.19 68.5% $125.73 $86.08 LEVEL II 62,930 27,722 44.1% $80.53 $35.48 58.6% $93.37 $54.70 72.7% $109.62 $79.73 TOTAL 168,423 60,892 36.2% $88.57 $32.02 50.0% $102.42 $51.19 70.0% $119.62 $83.76 RESORTS VAIL 47,045 21,414 45.5% $466.73 $212.45 41.6% $371.36 $154.53 52.5% $348.40 $182.92 ASPEN 25,730 10,072 39.1% $807.62 $316.14 56.1% $598.18 $335.73 66.2% $569.17 $377.01 TELLURIDE 14,999 4,686 31.2% $609.95 $190.56 48.5% $419.61 $203.71 52.8% $369.02 $194.87 BRECKENRIDGE 39,376 20,890 53.1% $342.82 $181.88 47.0% $246.20 $115.82 55.6% $223.25 $124.16 STEAMBOAT SPRINGS 23,002 10,515 45.7% $188.39 $86.12 54.6% $166.13 $90.63 65.6% $174.66 $114.65 OTHER RESORTS 121,891 44,813 36.8% $394.77 $145.14 43.9% $313.34 $137.42 55.4% $296.68 $164.48 TOTAL RESORTS 272,043 112,390 41.3% $425.49 $175.78 46.3% $334.74 $155.05 56.7% $318.72 $180.64 DURANGO 18,507 7,301 39.4% $103.70 $40.91 53.5% $119.04 $63.70 69.8% $132.86 $92.69 GRAND JUNCTION 29,711 11,909 40.1% $60.44 $24.23 51.7% $69.75 $36.04 60.4% $84.00 $50.73 GLENWOOD SPRINGS 35,836 18,523 51.7% $138.23 $71.45 57.0% $131.58 $74.96 65.0% $143.52 $93.31 ESTES PARK 26,108 9,473 36.3% $178.19 $64.65 42.0% $195.66 $82.12 54.9% $195.83 $107.56 LONGMONT 29,481 7,759 26.3% $72.13 $18.98 34.3% $87.39 $29.94 61.4% $120.56 $73.98 FT. COLLINS 56,749 14,728 26.0% $87.98 $22.83 44.4% $98.40 $43.70 67.3% $125.64 $84.59 LOVELAND 31,961 10,796 33.8% $82.18 $27.76 48.3% $98.58 $47.60 71.2% $125.14 $89.05 GREELEY 21,421 9,418 44.0% $72.24 $31.76 50.6% $84.85 $42.93 75.4% $106.38 $80.21 CRAIG 13,404 5,751 42.9% $73.57 $31.57 50.0% $79.15 $39.55 51.8% $81.98 $42.44 OTHER COLORADO 57,357 22,659 39.5% $84.01 $33.19 49.0% $86.47 $42.35 59.2% $99.41 $58.83 TOTALS 1,907,540 671,027 35.2% $143.92 $50.63 44.0% $133.16 $58.64 69.7% $160.21 $111.59 Colorado Hotel & Lodging Association 1701 California Street, Suite LL-1061 Denver, Colorado 80202 (303) 297-8335 FAX: (303) 297-8104 www.coloradolodging.com AFFILIATED WITH AMERICAN HOTEL AND LODGING ASSOCIATION The Rocky Mountain Lodging Report is compiled by Plante Moran, in cooperation with the Colorado Hotel & Lodging Association, Robert S. Benton & Associates, Inc. and W. R. Hopping & CO. Readers are advised that the above do not represent the data contained herein to be definitive. Neither should the contents of this publication be construed as a recommendation on policies or actions. This report is subject to copyright laws. Reproduction of this report, in whole or in part, without written permission, is prohibited. For additional information, please contact Robert Benton at (303) 840-1666, Bill Hopping, MAI (303) 798-4045 or Bob Hottman at (303) 740-9400 The Rocky Mountain Lodging Report • P.O. Box 632242 • Littleton, CO 80163 • rockymountainlodgingreport@comcast.net • www.rockymountainlodgingreport.com PANDEMIC IMPACT ON ROOMNIGHT AVAILABILITY Due to the COVID-19 pandemic, some hotels have elected to temporarily close their doors. To be consistent with past methodology for when hotels close, either temporarily or permanently, closed rooms and hotels are removed from inventory so that calculated occupancies and average daily rates shown in the report reflect data only for those rooms that are available for occupancy. Hotels open for a portion of the month are included in the survey, and rooms available reflect the portion of the month that the hotel was open. As hotels reopen or make some of their rooms available for occupancy in the future, that supply will be added to the rooms survey when available for occupancy. ATTACHMENT 4 1.4 Packet Pg. 95 Attachment: Rocky Mountain Lodging Reports (10349 : Visit Fort Collins Destination Master Plan and Recovery Plan) ROCKY MOUNTAIN LODGING REPORT Summary of Occupancy and Average Daily Room Rates for the Colorado OCCUPANCY AVERAGE REVENUE PER PERCENTAGE DAILY RATE AVAILABLE ROOM 2020 2019 2020 2019 2020 2019 JANUARY 58.1% 58.7% $167.32 $169.79 $97.15 $99.69 FEBRUARY 63.5% 64.1% $172.18 $174.87 $109.28 $112.15 MARCH 38.8% 69.3% $151.15 $169.00 $58.65 $117.05 APRIL 16.8% 66.3% $82.23 $139.00 $13.80 $92.16 MAY 26.5% 69.5% $83.27 $142.94 $22.07 $99.30 JUNE 38.3% 80.5% $104.85 $166.65 $40.19 $134.17 JULY 48.9% 85.4% $132.06 $176.31 $64.57 $150.55 AUGUST 51.1% 81.3% $131.64 $167.13 $67.28 $135.80 SEPTEMBER 50.8% 76.6% $121.04 $159.70 $61.50 $122.39 OCTOBER 50.5% 71.9% $110.29 $151.84 $55.66 $109.14 NOVEMBER 34.4% 58.1% $99.20 $130.27 $34.16 $75.69 DECEMBER 35.2% 53.4% $143.92 $167.38 $50.63 $89.45 YEAR TO DATE 44.0% 69.7% $133.16 $160.21 $58.64 $111.59 90 75 60 45 30 15 180 160 140 120 100 80 60 COLORADO PERCENTAGES OF OCCUPANCY 2020 vs. 2019 2020 OCCUPANCY 2019 OCCUPANCY COLORADO AVERAGE ROOM RATES 2020 vs. 2019 JAN MAR MAY JUL SEPT NOV FEB APRIL JUN AUG OCT DEC 2020 AVERAGE RATE 2019 AVERAGE RATE JAN MAR MAY JUL SEPT NOV FEB APRIL JUN AUG OCT DEC 1.4 Packet Pg. 96 Attachment: Rocky Mountain Lodging Reports (10349 : Visit Fort Collins Destination Master Plan and Recovery Plan) ROCKY MOUNTAIN LODGING REPORT Colorado Edition April 2021 2021 YEAR-TO-DATE 2020 YEAR-TO-DATE ROOM NIGHTS OCC OCC OCC LOCATION AVAILABLE OCCUPIED % ADR REVPAR % ADR REVPAR % ADR REVPAR DENVER 1,136,252 592,943 52.2% $95.94 $50.06 43.4% $90.37 $39.24 47.0% $123.66 $58.09 COLORADO SPRINGS LEVEL 1 98,407 59,295 60.3% $106.42 $64.12 46.4% $101.75 $47.23 40.3% $108.99 $43.87 LEVEL II 60,900 42,178 69.3% $90.18 $62.46 55.6% $85.70 $47.69 46.4% $87.31 $40.53 TOTAL 159,307 101,473 63.7% $99.67 $63.49 49.8% $95.14 $47.40 42.5% $100.51 $42.68 RESORTS VAIL 41,789 12,634 30.2% $295.25 $89.26 52.4% $436.02 $228.63 62.4% $501.25 $312.83 ASPEN 17,739 6,108 34.4% $442.37 $152.32 47.3% $653.73 $309.11 73.1% $731.05 $534.55 TELLURIDE 8,694 2,557 29.4% $247.30 $72.73 46.5% $519.12 $241.47 60.2% $473.89 $285.50 BRECKENRIDGE 36,589 15,314 41.9% $203.71 $85.26 58.2% $298.05 $173.38 71.8% $314.51 $225.84 STEAMBOAT SPRINGS 23,940 7,902 33.0% $113.90 $37.59 52.0% $188.10 $97.81 66.1% $208.74 $137.99 OTHER RESORTS 122,375 34,118 27.9% $237.59 $66.24 40.7% $334.91 $136.25 56.6% $352.92 $199.74 TOTAL RESORTS 251,126 78,633 31.3% $244.05 $76.42 47.1% $371.44 $174.80 62.3% $405.91 $252.82 DURANGO 17,490 10,276 58.8% $99.71 $58.58 48.0% $95.58 $45.89 39.2% $91.49 $35.89 GRAND JUNCTION 25,980 18,480 71.1% $85.89 $61.10 57.0% $73.08 $41.65 41.0% $64.51 $26.45 GLENWOOD SPRINGS 34,680 22,598 65.2% $123.72 $80.62 61.9% $130.30 $80.63 46.7% $127.56 $59.51 ESTES PARK 29,821 10,570 35.4% $155.96 $55.28 32.9% $153.77 $50.59 22.6% $144.37 $32.60 LONGMONT 24,180 10,800 44.7% $86.74 $38.74 34.4% $76.67 $26.41 32.2% $99.25 $31.94 FT. COLLINS 53,718 30,375 56.5% $97.93 $55.37 44.2% $92.58 $40.96 41.0% $99.93 $40.96 LOVELAND 31,140 18,091 58.1% $96.04 $55.79 48.7% $92.25 $44.96 42.6% $110.89 $47.25 GREELEY 21,600 14,334 66.4% $87.22 $57.88 56.1% $81.16 $45.53 53.4% $95.44 $50.94 CRAIG 13,230 5,180 39.2% $72.59 $28.42 37.2% $70.00 $26.03 33.4% $70.63 $23.56 OTHER COLORADO 53,040 31,867 60.1% $81.10 $48.73 50.6% $87.85 $44.43 37.7% $86.38 $32.56 TOTALS 1,851,564 945,620 51.1% $109.04 $55.69 45.2% $133.72 $60.45 47.0% $160.06 $75.18 Colorado Hotel & Lodging Association 1701 California Street, Suite LL-1061 Denver, Colorado 80202 (303) 297-8335 FAX: (303) 297-8104 www.coloradolodging.com AFFILIATED WITH AMERICAN HOTEL AND LODGING ASSOCIATION The Rocky Mountain Lodging Report is compiled by Plante Moran, in cooperation with the Colorado Hotel & Lodging Association, Robert S. Benton & Associates, Inc. and W. R. Hopping & CO. Readers are advised that the above do not represent the data contained herein to be definitive. Neither should the contents of this publication be construed as a recommendation on policies or actions. This report is subject to copyright laws. Reproduction of this report, in whole or in part, without written permission, is prohibited. For additional information, please contact Robert Benton at (303) 840-1666, Bill Hopping, MAI (303) 798-4045 or Bob Hottman at (303) 740-9400 The Rocky Mountain Lodging Report • P.O. Box 632242 • Littleton, CO 80163 • rockymountainlodgingreport@comcast.net • www.rockymountainlodgingreport.com PANDEMIC IMPACT ON ROOMNIGHT AVAILABILITY Due to the COVID-19 pandemic, some hotels have elected to temporarily close their doors. To be consistent with past methodology for when hotels close, either temporarily or permanently, closed rooms and hotels are removed from inventory so that calculated occupancies and average daily rates shown in the report reflect data only for those rooms that are available for occupancy. Hotels open for a portion of the month are included in the survey, and rooms available reflect the portion of the month that the hotel was open. As hotels reopen or make some of their rooms available for occupancy in the future, that supply will be added to the rooms survey when available for occupancy. 1.4 Packet Pg. 97 Attachment: Rocky Mountain Lodging Reports (10349 : Visit Fort Collins Destination Master Plan and Recovery Plan) ROCKY MOUNTAIN LODGING REPORT Summary of Occupancy and Average Daily Room Rates for the Colorado OCCUPANCY AVERAGE REVENUE PER PERCENTAGE DAILY RATE AVAILABLE ROOM 2021 2020 2021 2020 2021 2020 JANUARY 35.1% 58.1% $133.34 $167.32 $46.82 $97.15 FEBRUARY 43.3% 63.5% $144.42 $172.18 $62.58 $109.28 MARCH 51.3% 38.8% $149.44 $151.15 $76.68 $58.65 APRIL 51.1% 16.8% $109.04 $82.23 $55.69 $13.80 MAY - - - - - - JUNE - - - - - - JULY - - - - - - AUGUST - - - - - - SEPTEMBER - - - - - - OCTOBER - - - - - - NOVEMBER - - - - - - DECEMBER - - - - - - YEAR TO DATE 45.2% 47.0% $133.72 $160.06 $60.45 $75.18 90 75 60 45 30 15 180 160 140 120 100 80 60 COLORADO PERCENTAGES OF OCCUPANCY 2021 vs. 2020 2021 OCCUPANCY 2020 OCCUPANCY COLORADO AVERAGE ROOM RATES 2021 vs. 2020 JAN MAR MAY JUL SEPT NOV FEB APRIL JUN AUG OCT DEC 2021 AVERAGE RATE 2020 AVERAGE RATE JAN MAR MAY JUL SEPT NOV FEB APRIL JUN AUG OCT DEC 1.4 Packet Pg. 98 Attachment: Rocky Mountain Lodging Reports (10349 : Visit Fort Collins Destination Master Plan and Recovery Plan) Visit Fort Collins – Tourism Update Destination Master Plan and Road To Recovery Agenda•Tourism & Visit Fort Collins Update•COVID19 Impacts•Destination Master Plan•Destination Recovery Plan Fort Collins Tourism ~ Total economic impact for tourism for the community was $346MTotal jobs increased 10.4% to 4,197 ROI to influence leisure trip spending by Visit Fort Collins was $35 to $1 2020 Sales & Use Tax Lodging tax collections were down -47.6% Restaurant and Bars down -16.7% Sales Tax in City’s Downtown Area -9.6%Hotels, Restaurants, and Retailers are Significantly ImpactedYear 2010 2011 2012 2013 2014 2015Lodging Tax $807,748 $908,908 $1,001,840 $1,102,694 $1,304,613 $1,451,008Year 2016 2017 2018 2019 2020Lodging Tax $1,453,307 $1,520,567 $1,793,693 $1,946,406 $1,021,171Compounded Annual Growth Rate between 2010 – 2019 was 10.3%2020 Lodging Tax Revenue lost 8 years of lodging tax revenue growth. What did Visit Fort Collins do while travel paused? •Website – highlighting COVID health and safety information and FoCo To Go and FoCo From Home •Safety Pledge to inspire travel and resident confidence•QR Code implementation –Signage at hotels front desk, QR stickers on our Visitor Guides and posters in our window at the Downtown Visitor Information Center •Information sharing with direct ties to help them operate •Kept Public Relations and Social Media efforts in place to maintain readiness for when travel returns •Partner with City, County and State •Launched an eCommerce site –The Fort Collins Marketplace Destination Master Plan2020 Master Plan Intent •Drive a sustainable tourism development model •Stimulate economic activity capable of generating inclusive employment•Prepare Fort Collins for future destination opportunity•Develop quality of place across all parts of the Fort Collins community Essential Checklist to Forming DecisionsGathering Stakeholder Input Assessing Tourism Assets Developing Strategic Recommendations 27 focus groups Fort Collins City Plan Four Key Themes130 individuals Fort Collins Transportation Plan Three Signature Links18 person steering committee FOCO Creates Art & Culture Master Plan 11 Strategic PrioritiesFort Collins City Council Talent 2.0 Regional Workforce Visit Fort Collins Future ActionsVisit Fort Collins Board of Directors Sports Complex Feasibility Study City of Fort Collins Future ActionsCity Leadership JLL Hotel Business Mix Review Partner Future Actions RRC Visitor Profile Study ‘17 and 19’Think Tourism Sentiment Index Three Signature Links Eleven Strategic Priorities •Striving for Inclusion•Connecting for Talent•Funding the Future •Responding to Community Issues •Branding Pride of Place•Expanding Basecamp•Leveraging Community Connections•Encouraging Aspirational Concepts•Fostering Creative Community•Harnessing the Essence of Fort Collins•Configuring Events•Improving Gateways and Corridors•Supporting the needs of the Nighttime Economy •Investing in Quality of Place •Sustaining Community•Including Community•Building Community•Branding Community Four Key Community Themes Recovery Plan2021 Rebuilding For ResiliencyAPATHFORWARDFOR VISIT FORT COLLINS ENSURING SAFETY FOR ALLEnsuring our residents and hospitality sector employees are safe will continue to be front and center in all strategic actions and as an integral component of the Destination Recovery Plan. Health officers and medical professionals throughout the state, county and city are addressing and updating safety programs and support on an ongoing basis. Visit Fort Collins will continue to stay informed with these measure and act as a resource for disseminating those message for visitors, hospitality partners and the community. VISIT FORT COLLINS: REBUILDING FOR RESILIENCY | PAGE 2A PATH FORWARD Strategies andTacticsVisit Fort Collins plays an active role in helping the community navigate its way through recoveryfrom the impacts of COVID-19.The strategic recommendations for recovery actions fall into fourareas, each with ties to the Destination Master Plan.Re-examiningthe DestinationAdditional Actionsthat Contribute to the Community's RecoveryBuilding on a Strong Base Strategies and TacticsThis Destination Recovery Plan is meant to provide a clear direction for Fort Collins to rapidly regain lost ground across the tourism-related economy and emerge as a more strategic and sustainable destination.The primary goal of the recovery plan is to give Visit Fort Collins immediate and short-termactions that will continue to support the destination and community in its recovery from the impact of the pandemic and returnto its growth trajectory.The plan is built around three guidingprinciples to ensure that Fort Collins as atravel destination will emerge stronger fromthe COVID crisis and continue to contribute tothe city’s overall recovery.GUIDING PRINCIPLESElevate marketing and programs to encourage the return of visitors by placing destination partners and service providers at the heart of destination recovery;Communicate Fort Collins’ commitment to safety for residents, community members, and visitors as the city reopens and recovers;Build afoundation for resiliency—adjust strategic initiatives to make Fort Collins less vulnerable to external shocks. Strategies and TacticsWithout competitive funding, recovery actions will reflectpandemic impacted revenues and take longer to positivelyinfluence recovery. Leisure travelers will be the first to return. Visit Fort Collins should continue to market its unique character and proximity to regional attractions to prompt travel decisions.Meetings and conferences will come back more slowly than leisure, but destinations that rebuild group business fromwithin will prosper more rapidly and be more resilient in the long-termBuilding on the brand promise of Fort Collins establishes anemotional bond between residents and guestsStrategy 1:Secure Competitive Funding Strategy 2:Strategy 3:Strategy 4:Differentiate Basecamp Fort Collins Develop Deep Community Connections Leverage Brand Promise Visit Fort Collins is the official destination marketing organization for Fort Collins and is responsible for marketing Fort Collins to travelers fromaround the world. In addition to the focused strategies and tactics outlined above to encourage increased visitation and help the city's tourismand hospitality sector recover, Visit Fort Collins should also support activities in the medium- and long-term that help other areas ofthe community rebuild. Rebuilding the entire Fort Collins community is important as it will strengthen the city's quality of place and ensure that Fort Collins remains a competitive destination for visitors, talent, and residents.Actions that Contribute to the Community's RecoveryCreative CommunityThe negative impact to creative providers requires many organizations to help with recovery. Visit FortCollins will serve as a resource to this group and will support initiatives that contribute to the recovery of the creative communityVisitor-facing Business SegmentsRecovery looks different for each business segment based on their needs. Visit Fort Collins will remain attuned to challenges faced by each segment and lend support where appropriate.Configuring EventsEvents will continue to be important activities for the city. Visit FortCollins will work with destination partners to reposition events to better support community needs, seasonality, and sustainability. Wrap Up Question Opportunity•Does Council have any questions or feedback about the Destination Recovery Plan? •Does Council have any questions or feedback about the Destination Master Plan? DATE: STAFF: June 8, 2021 Theresa Connor, Interim Utilities Executive Director WORK SESSION ITEM City Council SUBJECT FOR DISCUSSION Water Utility Overview. EXECUTIVE SUMMARY The purpose of this item is to provide an overview of the Fort Collins water utility, which provides reliable, high - quality water for approximately two-thirds of the city’s residents and businesses. On average, 26 million gallons of water are treated every day. This represents one of the largest investments the City makes in the Environmental Health Outcome Area within the City’s services. Investment will be needed now and into the future to address aging water infrastructure, adapt to climate change, meet increased regulations, and ensure enough water to sustain our community’s quality of life today and tomorrow. GENERAL DIRECTION SOUGHT AND SPECIFIC QUESTIONS TO BE ANSWERED Does Council have any questions or feedback about the strategic direction or operations of the water utility? BACKGROUND / DISCUSSION An annual update will be provided on each of the four incumbent utilities to provide Council an overview of the utilities and opportunity to address any questions on policy al ignment or operations. Water is an essential ingredient to the many activities and businesses that make Fort Collins special. This is the second installment of the community-owned Utilities overviews and covers the water utility, which is responsible for raw water collection and supply, water treatment and distribution to homes and businesses, water conservation and customer programs. Water and wastewater utilities are foundational community institutions that provide critical and reliable services 24/7/365 while protecting the health of our community and natural resources. The challenges we face today and tomorrow require new technology, innovation, and foresight. Investments in our water resources and infrastructure help protect our community and sustain our high quality of life. A high-quality, affordable, reliable, and resilient water supply is the foundation for a thriving community. For over 140 years, Utilities has provided a water supply that has met and exceeded the needs of its customers and this wa ter supply has allowed Fort Collins to grow into a world-class community with a diverse economy. The Numbers • Residential customer accounts - 32,500 • Commercial customer accounts - 2,000 • Population served in 2020 - 142,000 • Average total daily treated water - 26 million gallons per day • Average total water delivered - 8.7 billion gallons per year • Acres of watershed above Poudre intake - 672,000 • Number of employees - 93 • 2021 operating budget - $17.9 million • 2021 Capital Budget - $13.6M 2 Packet Pg. 117 June 8, 2021 Page 2 CUSTOMER SATISFACTION SURVEY Utilities serves approximately two-thirds of the City’s population. Other areas of the city are largely served by the East Larimer County Water District (ELCO) (northeast Fort Collins) or Fort Collins -Loveland Water District (south Fort Collins). Utilities has a long history of measuring customer satisfaction to ensure world -class customer service. In 2020, Utilities transitioned its customer satisfaction survey to a benchmark survey with J.D. Power who compares the results for Fort Collins Utilities with utilities nationwide and the mid-size west utilities. Utilities made this change to support the Baldridge practice of benchmarkable data to understand how we compare industry -wide and received J.D. Power information on what key performance indicators drive higher overall customer satisfaction within the six factors of the survey. Utilities intends to conduct the J.D. Power surveys and other surveys to capture the voice of the customer following this schedule: • Even years (began in 2020): residential electric and water/wastewater surveys fielded in two waves to track customer satisfaction. • Odd years (beginning in 2021): commercial electric survey fielded in one wave. Utilize the Fort Collins Community Survey to track Utilities residential customer satisfaction. In 2020, the residential water/wastewater survey achieved a response rate of 4.4%, exceeding the goal of 99% confidence level and less than 5% margin of error. The response rate was approximately 300% greater than the previous survey participation rate. In addition to overall satisfaction, the survey uses six factors for measuring customer satisfaction: • Quality and reliability • Billing and payment • Price • Communication • Conservation • Customer service Key Performance Indicators (KPIs) The KPIs below display a snapshot of the factors that were deemed most impactful to overall satisfaction. Areas of Strength • 91% of customers believe unfiltered water is safe or very safe (65%*) • 81% aware of water conservation programs (58%*) • 60% aware of efforts to improve impact on environments (45%*) • 63% aware utility is ensuring adequate supplies of water in the future (45%*) Areas of Improvement • 25% aware of utility protecting water supply (30%*) • 61% utility does a good job maintaining current water infrastructure (63%*) *The average score of mid-size west utilities The Overall Satisfaction score is calculated based on the weighted factors scores and attributes. • Overall Satisfaction: Utilities scored 757 - above the national average of 742 and above the mid-size west utilities of 739 - an excellent score for a newly participating utility. However, Utilities’ score of 757 was below the top quartile score of 785, which is an overall customer satisfaction greater th an 75% of national utilities, e.g., a top-performing utility. • Quality and Reliability: Utilities scored 873 - above the national average of 777 and above the mid-size west utilities of 774. 2 Packet Pg. 118 June 8, 2021 Page 3 • Billing and Payment: Utilities scored 801 - above the national and mid-size west utilities scores, both of which are 791. • Price: Utilities scored 627 - below the national average of 701 and below the mid-size west utilities score of 698. The average water bill as reported by customers was $79 compared to the ind ustry average of $85 and mid-size west average of $87. • Conservation: Utilities scored 742 - above the national average of 720 and above mid-size west utilities of 722. • Customer Service: Utilities scored 783 - below the national average of 812 and below the average of mid- size west utilities of 808. Customer service includes both the phone and digital experience. Overall, Utilities performed above average on in-person and field personnel interactions and below average on the phone and digital experience. • Communication: Utilities scored 675 - below the national average of 705 and below the average mid-size west utilities of 699. In summary, the utility industry nationwide continues to respond to the needs and desires of customers and scores continue to increase yearly. Partnering with J.D. Power enables Utilities to compare its performance within the evolving industry to measure and achieve outstanding customer service. Examples of Customer Programs Income-Qualified Assistance Program (IQAP) • IQAP is a reduced electric, water and/or wastewater rate that provides 23% off certain components of these services. Customers that are enrolled in the Low-Income Energy Assistance Program (LEAP) are eligible to apply for IQAP. Of the approximately 740 customers on IQAP, 215 receive the discounts on water and 216 receive the discounts on wastewater. Additional details at: fcgov.com/IQAP. MyWater Customer Portal • MyWater is an online portal available to all Utilities water customers. Customers can track water use and costs, sign up for leak and water use alerts and notifications, and find ways to save. This system also delivers customized reports about water use through the Home Water Reports program, though this has since expanded to provide customized water use reports to commercial customers, as well. Customers appreciate these programs: there is an open rate of over 50% for the reports (industry average is 25%). Registrations for the portal tripled in 2020 and over 1,000 new customers have registered in 2021. The Water System The City’s water supply comes from two different, independent sources - The Cache la Poudre (Poudre) River basin and Horsetooth Reservoir, which is part of the Colorado -Big Thompson (CBT) Project. As the name suggests, CBT water stems from the Colorado River basin on the western slope of Colorado and is transported to many communities on the eastern slope through a variety of reservoirs and pipes. The Poudre water source begins at Cameron Pass with the Michigan Ditch capturing and bri nging water from the western slope into City- owned Joe Wright Reservoir. This stored water along with native Poudre flows is captured near Gateway Natural Area and conveyed to the City’s Water Treatment Facility where it is treated and distributed to Utili ties’ customers. Approximately 50% of Utilities’ total water supply comes from the Poudre River with the remaining 50% coming from Horsetooth reservoir through Soldier Canyon Dam into the Water Treatment Facility. Source Water Utilities uses approximately 25,000 acre-feet of source water each year to treat to potable standards for our customers. • Joe Wright Reservoir holds 7,400-acre feet at the headwaters of the Cache la Poudre watershed with water from the Michigan River Basin. • Poudre River - Utilities operates two intakes on the Poudre River. 2 Packet Pg. 119 June 8, 2021 Page 4 • Poudre River Raw Water Pipelines - Utilities has 13-miles of pipelines to convey raw water to the Water Treatment Facility. • Horsetooth Reservoir and CBT - potable water used is provided by Northern Water t hrough Horsetooth Reservoir and the CBT Project that delivers water from the western slope. Water Treatment Facility • The Water Treatment Facility is rated to treat 87 million gallons a day (MGD). Summer peak demands are approximately 50 MGD, while winter demands for indoor use only are approximately 14 MGD. The average annual demand is 26 MGD. • The Water Treatment Facility operates within and maintains an Environmental Management System ISO 14001 certification. The facility is recognized by the Colora do Department of Health and Environment (CDPHE) as a Gold Level Environmental Leader and is also a Directors level participant in the American Water Works Association (AWWA) Partnership for Safe Water, one of only 35 plants in the U.S. to attain this certification. Water Quality Lab Water Quality Laboratory (WQL) plays a key role in ensuring that Fort Collins’ drinking water is safe and high - quality from the time it leaves the treatment facility to when it reaches a customer’s home or business. Not every water utility has its own WQL, but ours is certified by the State of Colorado for the analysis of drinking water, which allows Utilities to meet the requirements of Colorado’s Safe Drinking Water regulations in -house. Having City-owned laboratory facility is a cost-effective and agile way to monitor water, ensure its high-quality, and quickly identify and react to any issues. In addition to monitoring drinking water produced at the Water Treatment Facility, the WQL staff regularly test samples from our source water supplies, including the Poudre River and Horsetooth Reservoir, from various points across the water distribution system (including when water mains are installed or replaced), and from City water features and pools. The WQL provides fee-based laboratory services to other regional entities that do not maintain their own laboratories. Additionally, WQL staff respond to residents’ concerns and questions about their drinking water, offering guidance and information, and collecting and testing samples as needed. Distribution, Transmission and Water Meters Utilities maintains: • 546 miles of 4-inch to 60-inch diameter water distribution and transmission pipelines • 39,279 water service lines • 13,426 water valves • 3,832 fire hydrants • 35,800 water meters The distribution system is generally sized to meet fire flow requirements. As the Downtown area increases in density, the older, smaller diameter water mains will need to be replaced to meet modern requirements for fire flow and pressure. Utilities experiences approximately 80-100 water main breaks a year. Most main breaks are experienced in the area built during the 1970s and 1980s. The ductile iron pipe used during that time is thinner and more subject to damage from the surrounding soils corroding the pipe from the outside. Water main breaks tend to occur seasonally due to the impact of changing temperatures causing a shift in soil conditions. A leak detection program is conducted year-round by the utility by setting loggers and “listening” to the mains for leaks that may not be seen surfacing from the ground. Utilities does maintain a proactive maintenance program by exercising valves and hydrants on a routine basis so that they work when they are needed. The Water Meter Program uses Advance Metering Infrastructure (AMI) to record meter readings on a 15-minute basis and transmit readings automatically. Fort Collins is rather unique in that two -thirds of the water meters are inside customer’s homes or crawl spaces. This requires a great deal of c oordination with the customer to do 2 Packet Pg. 120 June 8, 2021 Page 5 appropriate meter maintenance. Meters and the AMI radio modules typically have a 15 -year life span and many are coming up for replacement, so customer outreach will be needed to facilitate this work. WATER RESOURCE MANAGEMENT PROGRAMS Watershed Management The Fort Collins Utilities Watershed Program’s (Watershed) mission is to monitor water quality for the protection of the City’s drinking water supplies and the Poudre River. Watershed monitors the quality of the City’s drinking water supplies, Halligan Reservoir and the Poudre Watershed in Fort Collins by leading or otherwise engaging in several regional cost-share collaborative programs. Watershed’s Source Water Protection Plan is used to prioritize watershed protection projects to reduce the risk of pollution to protect the City’s drinking water supplies. Projects include, for example, forest treatments to mitigate the risk of future large-scale, catastrophic wildfires; post-fire stream channel and hillslope restora tion; development of a spill response plan; and a harmful algal bloom monitoring and action plan for Horsetooth Reservoir. Watershed staff lead a broad range of additional projects and programs to protect the overall health of the Poudre Watershed; including, for example, the development of a watershed-wide River Health Assessment Framework for assessing the ecological health of the Poudre; leading the development of guidance and policy for managing water quality in City-owned lakes; and leading efforts to develop a real-time water quality monitoring program for the Poudre River within Fort Collins. Watershed staff are also leading efforts to develop a One Water Initiative for the City. This innovative initiative is intended to increase departmental alignm ent, communication, planning and implementation to improve how the City manages its water resources, recognizing that all water has value. Water Conservation and Efficiency Program & Services The Utilities Water Conservation program is over 40 years old. Services and policies benefit the utility and customers by delaying or avoiding significant capital costs and reducing water bills. The overarching goal of the program outlined in the Council-approved and state-required Water Efficiency Plan is to reduce community water use to 130 gallons per person per day by 2030. Programs and services include residential and commercial water rebates; the Xeriscape Incentive Program (XIP); 24/7 access to near real-time water use data; customized water budgets and efficiency audits; critical internal services, including irrigation plan review; and managing water demand and response during water shortages. Each year, staff reach over 20,000 customers via a variety of education programs and services. Partnering with our community in sustaining a conservation ethic has reduced water use by 35% since 2000. Water Resources Utilities Water Resources plans, tracks and accounts for water supply use in accordance with Colorado Water Law. This group manages the daily operations and reporting needs for utilities-owned raw water supplies, protect and develop utilities-owned water rights, and plan for future water supply needs. Additional activities include local irrigation and ditch company relations and board participation and management of an annual raw water rental program, which allows us to rent surplus water for the irrigation needs of local farmers and homeowner’s associations. This program helps offset the cost of annual assessments for maintaining our portfolio of water rights. Colorado Water Law & Reusable Water Systems Colorado Water Law is a complex system where all water in Colorado is essentially owned by the public and entities then have water rights that give them permission to use water for a beneficial purpose. The s ystem is based on the doctrine of prior appropriation, which commonly is referred to as “first in time, first in right”. The older the water right, the more senior the water right. In times of short supply, junior water rights are only allowed to divert water if all senior water rights holders have enough water. Utilities has three main sources of water supply, the Poudre River, the Michigan River, and Horsetooth Reservoir, which have distinct regimes for when and how these sources can be used. 2 Packet Pg. 121 June 8, 2021 Page 6 For the Poudre River, Utilities has numerous water rights to divert and use Poudre River water, including water rights represented by shares in ditch and reservoir companies. This water is diverted into Utilities’ pipelines and to storage. These water rights are confirmed in court decrees. The court decrees identify the key aspects of the water right, such as the priority date. The court decrees also include terms and conditions on where, when, and how the water may be diverted and used, and whether the water may be reused. Some of Utilities water rights that were previously used for irrigation include return flow obligations, where Utilities must deliver water to the river to maintain historical flow patterns. In times of limited supply, State of Colorado water admin istration officials curtail diversions under junior water rights so that diversions under more senior water rights can continue. For the Michigan River, Utilities has several water rights to divert and use Michigan River water. This water is diverted into the Michigan Ditch and conveyed across Cameron Pass into the Poudre basin and Joe Wright Reservoir. Like the Poudre River water, Utilities’ water rights on the Michigan River are also confirmed in court decrees and are subject to curtailment to meet the needs of senior water rights. Much of this Michigan River water is dedicated for use in a multi-faceted water sharing “Reuse Plan” with the Platte River Power Authority (PRPA), the Water Supply and Storage Company, and Anheuser-Busch. For Horsetooth Reservoir, Utilities has numerous contracts to use this water. This water is part of the CBT Project and the Windy Gap Project, two related water supply projects that divert Colorado River water and convey it to the northern Front Range. The Northern Colorado W ater Conservancy District (Northern Water) operates these projects and owns the underlying water rights, with farmers and water providers like Utilities having contracts to use this water. Some of the City’s rights to use CBT water are by virtue of Utiliti es’ ownership of shares in the North Poudre Irrigation Company. Utilities’ rights to use Windy Gap water are part of the Reuse Plan. Reclaimed Water “Reclaimed” water generally refers to water that has been treated at a large wastewater treatment facilit y, such as Utilities’ Mulberry and Drake Water Reclamation Facilities. This water is generally discharged back to the river, though reclaimed water can be reused, depending on whether the underlying water rights allow for reuse. Most Utilities’ water rights are “single use,” and thus do not allow for reuse. In partnership with PRPA under the Reuse Plan, reclaimed water from the Drake Water Reclamation Facility is also pumped up to PRPA’s Rawhide Energy Station for use there. CHALLENGES TO OUR SYSTEM Aging Infrastructure Utilities is fortunate to have a strong investment in infrastructure through the history of service to the community. Parts of the infrastructure are reaching or past their useful life and will need to be replaced or renewed soon. Example of this infrastructure includes: • The pipe network that conveys Poudre River Water through the Canyon and ultimately to the Water Treatment Facility is between 70-100 years old. To avoid unplanned flow interruptions or pipe failures, capital improvements to the pipe system will be necessary to maintain and replace the pipe system before it reaches end of life. • Much of the distribution system in Downtown Fort Collins is the original cast iron pipe, with some of it exceeding 130 years in service. The typical expected life is 50-70 years for metal pipe systems and 100 years for PVC pipe. In addition to age of pipe, the system is undersized in area to meet modern requirements for fire flow at hydrants. Best practice in the industry is to replace 1% of the sys tem each year, so that every 100 years the system is renewed. Currently, the replacement rate is less than 0.5%, so the rate of replacement of the distribution system should double over the coming years. 2 Packet Pg. 122 June 8, 2021 Page 7 • Prior to the 1950s and 60s, galvanized service lines were used from the distribution main to the house. Because of the brittle nature of the galvanized steel that can cause leaks, Utilities has been replacing these service lines since 1953. There are approximately 80 known galvanized services remaining in the system and approximately 1,000 services of an undetermined material (either galvanized, copper, or plastic). The galvanized services often have a short piece of lead pipe that connect it to the distribution system known as a gooseneck. Utilities is developing a program (the Safe Water Action Program) to replace these old service lines. • The Water Quality Lab is nearly 50 years old and does not meet current code for some portions of the building. Significant upgrades will be needed to maintain continu ity of operation at these facilities in the near term. A recent assessment has also identified that the most cost -effective option for the long term is to build new laboratories (vs. renovate the existing sites). Site and financing options are currently be ing explored. • The Water Treatment Facility, including the mechanical and electrical equipment, is over 50 years and requires constant maintenance, asset replacement and associated funding to ensure an uninterrupted water supply. This work is achieved through a comprehensive asset management program that plans this important work and ensures that equipment is fully operational at all times. • The treatment process monitoring system at the Water Treatment Facility, known as Supervisory Control and Data Acquisition (SCADA), is a critical system that also needs constant maintenance, asset replacement and funding. Utilities staff also operate and maintain the SCADA system in accordance with published cybersecurity standards and are constantly updating and improving the system to ever changing needs. A Changing Climate Bringing Hotter, Drier Weather Fort Collins has a semi-arid climate which means drought and wildfire have been part of our community forever. As climate conditions change, scientists predict that Fort Collins will experience hotter and drier conditions, which will reduce water supplies, increase water demands, increase soil aridification, and extend the irrigation season. They also predict that more of our precipitation will fall as rain instead of snow, reducing the snowpack we and many other communities rely on. The recent Water Supply Vulnerability Study (Study) investigated the impacts of various risks on the reliability of Utilities long-term water supply. This Study was the first of its kind for Utilities, highlighting some of the risks that must be planned for in providing reliable service in the face of an uncertain future. Key findings indicate: • A warmer/drier climate poses the largest risk to the current long-term planning strategy. • Adequate storage is crucial and current storage is not sufficient. • Reductions in available supplies from the CBT Project via Horsetooth Reservoir have significant impacts to system performance. The Study will help inform the upcoming Water Supply and Demand Management Policy update, which is discussed more below. INNOVATION AND OPPORTUNITIES Optimizing Operations Efforts to reduce our carbon footprint and meet the City’s Climate Action Plan goals include a 95 -kW solar array and a 79-kW micro-hydro power unit at the Water Treatment Facility. These efforts produce a combined 25% of the facility’s annual electric power needs. The Water Distribution truck fleet is approximately 30% alternative fuel based with efforts to replace all carbon fuel powered vehicles over time. The Water Treatment Facility is also an ISO 14001 certified facility and implements and manages several energy conservation measures as part of this program, such as decreased fuel usage, reduced electric power usage, environmentally f riendly landscape management and comprehensive recycling and completing programs. 2 Packet Pg. 123 June 8, 2021 Page 8 Asset Reliability Utilities uses an IBM Maximo Computerized Maintenance Management System (CMMS) to plan, schedule, and track all asset management work at the Water Treatment Facility and in the water distribution system. Asset condition, work history, and life-cycle data is monitored within Maximo’s dashboard. This information can be used for equipment reliability practices such as root cause failure analysis (RCFA). It als o is used for key budget decision making processes, such as identifying and tracking assets that are nearing the end of their life cycle, or assets that are of poor condition and in need of renewal or replacement sooner than projected. Regional Water Collaboration and Planning Utilities works daily with the other water service providers within the GMA area and surrounding region. One example is the response to and recovery from the Cameron Peak Wildfire. There is potential for more collaboration and effective planning for future water supplies with greater coordination and collaboration at the regional level. Water Resource Strategies and Plans Utilities manages water supply and demand through careful research and analysis regarding streamflow, diversions, climate, customer demand and population estimates to ensure a clean, reliable water supply for customers now and into the future. Our predecessors planned well for our present -day water resources, and we are fortunate to have a vast portfolio of water rights and flexible water sources. However, we are expecting greater population growth and climate-related challenges than our predecessors considered, and we need to adapt how we plan and prepare for the future. Utilities has the following water resource policies and plans: • Water Supply and Demand Management Policy (WSDMP) (2012): A version of this policy has existed since 1988 and provides a foundational framework for demand management and water supply planning decisions. The main objective is to pr ovide a sustainable and integrated approach to 1) ensuring an adequate, safe and reliable supply of water for the beneficial use by customers and the community and 2) managing the level of demand and the efficient use of a scarce and valuable resource cons istent with the preferences of water customers and in recognition of the region’s semi-arid climate. It includes water demands, water supply reliability, treated and raw water quality, use of surplus water and regional cooperation. • Water Efficiency Plan (WEP) (2015): A version of this plan has existed since 1992. The WEP complements the WSDMP by setting a goal and strategies to manage and reduce water use to an average of 130 gallons per capita per day by the year 2030. After the significant statewide dr ought in the early 2000’s, the State’s Colorado Water Conservation Board enacted legislation that requires most water providers to develop and implement water conservation and efficiency planning. The team provides a progress report each spring to the Water Commission and Council. • Water Shortage Action Plan (WSAP) (2020): A version of this document has existed since 2003 and complements the WSDMP by allowing the community to act during inevitable times of water shortages. The recently updated plan details five action levels for Utilities and the community to use as they work together to manage a potential or existing water shortage through a variety of water use management strategies. It recognizes that water shortages can stem from drought, impacts to w ater quality (like from wildfire) and infrastructure impacts. WSAP was used to manage risk during the 2020 Horsetooth Outlet Project, and we are currently under a Water Shortage Watch as the impacts of the Cameron Peak Fire on our watershed may affect water supplies in the Poudre. The WSDMP and WEP both need to be updated in the next few years. New information and data are available about water supplies, vulnerabilities, technology, cost of water resources, and water demand management strategies. Further, the current plans and policies reflected the City’s 2010 Plan Fort Collins, and the next updates will incorporate the context of the recently updated City Plan. In alignment with the statewide Colorado Water Plan, the updates also will aim to better recogn ize the relationship between water and land use planning. 2 Packet Pg. 124 June 8, 2021 Page 9 The previously mentioned Water Supply Vulnerability Study has and will continue to inform these guiding documents. Revisions to this policy are likely to include updated level of service goals fram ed by customer experience and adoption of risk -based water supply planning objectives that embed demand management targets and are based on selected planning futures. Consistent with industry best practice, Utilities intends to move away from yield-based planning toward more flexible planning that considers, and more accurately analyzes, climate change impacts and other water supply risks. Other regional water providers (e.g., Denver Water, Colorado Springs Utilities) have already moved in this direction. The study provides a basis for a similar evolution of Utilities’ planning. The Right Water for the Right Use - Onsite Water Reuse Systems such as Graywater and Blackwater Onsite systems reuse water at the building site for non-potable uses, such as toilet flushing or irrigation. “Graywater” generally refers to small-scale water reuse. This involves capturing the wastewater from certain indoor fixtures, performing simple treatment on that water, and then using that water again on the same parcel of land. Graywater cannot currently be used in Fort Collins because the City has not enacted an ordinance authorizing its use. “Blackwater” reflects capturing the entire raw sewage stream from a building and providing a treatment system to reclaim the water for irrigation use. Both systems are found to be most effective in multi-dwelling buildings, such as apartments or dormitories. Both systems would raise various issues with building codes and Colorado Water Law that would need to be worked through before authorizing a program. Water Storage Halligan Reservoir is an existing reservoir on the North Fork of the Poudre River, 25 miles northwest of Fort Collins. If approved, the Halligan Water Supply Project will enlarge Halligan Reservoir by approximately 8,1 00 acre-feet to meet the demand of future Utilities' water customers and provide increased reliability for existing customers to help protect against service interruptions related to prolonged drought and emergencies. Utilities currently owns and operates very little independent storage, which is a vulnerability in our system. Having more storage would allow us to physically save and store more water conserved by our community for use during droughts and emergencies. The Halligan Water Supply Project is also an opportunity to restore environmental flows to portions of the North Fork of the Poudre River. The environmental approach to the project is state of the art while providing essential storage needed for future water supplies. Permitting and planning for a project like this take many years and a lot of work. Here are some recent milestones for the project: • 2019: Draft Environmental Impact Statement released by the U.S. Army Corps of Engineers • 2020: Launch of the two state permitting processes: The Fish & Wildlife Mitigation and Enhancement Plan and the 401 Water Quality Certification. More refined information about permitting, timeline and cost estimate for the project are being developed in 2021 and is expected to be available in early 2022. FINANCIAL OUTLOOK Utilities seeks to provide a high-quality product at a reasonable cost to the community. One way to monitor costs is to compare rates with neighboring communities. Utilities is the most affordable when compared with other communities. Smoothing out the rate and not implementing significant rate increases above 5% is a commitment to the community to manage financial pressures from year to year. As Utilities deals with the need to address infrastructure issues, such as expansion of the Halligan Reservoir and aging infrastructure at the treatment plant, water quality lab and distribution system, rate adjustments and use of debt will be required in the future. 2 Packet Pg. 125 June 8, 2021 Page 10 The 10-year Capital Improvement Plan (CIP) for the Water Fund consists of projects needed to provide an adequate water supply, treatment facility improvements and an increase in the renewal of the distribution system to a more sustainable, long-term replacement rate. The Halligan Water Supply Project is anticipated to begin physical construction in the 2025/26 BFO cycle with cost uncertainty being reduced through additional design and mitigation refinements. The CIP is usually updated in the “off” BFO year, which is this year prior to the return of the normal two-year BFO cycle for 2023/24. Inflationary pressure for construction activities and increased costs for water resources will be factored into the update this year. The information presented here is from our latest update, so changes can be expected in the next update. 2 Packet Pg. 126 June 8, 2021 Page 11 Water Operations Operating revenues have grown modestly over the past decade through rate increases while total water production has remained flat. Based on the projected revenue requirements for operations and maintenance (O&M) and capital investment, revenues are projected to grow at a rate similar to the past decade. $0 $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 $30,000,000 $35,000,000 $40,000,000 $45,000,000 $50,000,000 Annual Operating RevenuesWater Fund Operating Revenues (2010 -2030) Operating Revenue (2.0% per yr) Assuming Historical Trend (3.0% per yr) The colored area represents the 95% confidence band around the expected operating expense. O&M expenses in the Water Fund have increased at a reasonable 2.9% annualized rate over the past d ecade. This has been achieved through active management. The rate and debt issuance forecasts in the plan assume that O&M will increase at a rate closer to the rate of consumer inflation over the coming decade. $0 $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 $30,000,000 $35,000,000 $40,000,000 $45,000,000 Annual Operating ExpensesWater Fund Operating Expensees (2010 -2030) Operating Expenses (2.1% per yr) Assuming Historical Trend (2.9% per yr) The colored area represents the 95% confidence band around the expected operating expense. 2 Packet Pg. 127 June 8, 2021 Page 12 By limiting O&M to a modest rate of growth it is expected that the operating margin will decrease over the coming decade, which will require rate adjustments to meet the expected increase in debt service r elated to significant infrastructure investments. ($5,000,000) $0 $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 $30,000,000 $35,000,000 $40,000,000 2010 2012 2014 2016 2018 2020 2022 2024 2026 2028 2030 Water Fund Operating Income (2010 -2030) OPERATING INCOME Total Operating Revenue Total Operating Expenses Water Rate and Debt Forecasts Rate increases are not anticipated to be significant over the coming decade, although any significant change in the necessary capital investments may require modest rate adjustments to ensure adequate operating revenue is generated to support the system renewal investments. Some debt will be needed for capital investments over the next decade, including a significant issuance ahead of beginning construction on the Halligan Reservoir. An update to the CIP is completed in the “off” years of BFO, which would normally be this year. The 10 -year capital investment is expected to be completed this fall and presented to the Council Finance Committee in the winter prior to resuming the normal two-year budget cycle for 2023/24. This will give a more accurate prediction of rate needs. 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Rate Increase 0%0%2%0-2%0-2%0-2%1-3%1-3%1-3%2-4%2-4% Debt Issuance $55-65M $30-35M $209M of capital work is expected to be needed between 2020 and 2030 in addition to the current capital appropriations ATTACHMENTS 1. Powerpoint Presentation (PDF) 2 Packet Pg. 128 Wa ter Utility Overview Providing Safe, High-Quality, Reliable Water ATTACHMENT 1 2.1 Packet Pg. 129 Attachment: Powerpoint Presentation (10368 : Water Utility Overview) Overview 2 Are there any questions or feedback about the direction of the Potable Water Utility? 2.1 Packet Pg. 130 Attachment: Powerpoint Presentation (10368 : Water Utility Overview) Overview 1 |Strategic Plan Alignment 2 |Outcome of Service & Customers 3 |System Overview & Challenges 4 |Innovation & Opportunities 5 |Financial Considerations 6 |How It Happens –The People 7 |Questions, Comments & Discussion 3 2.1 Packet Pg. 131 Attachment: Powerpoint Presentation (10368 : Water Utility Overview) City Strategic Plan Alignment Livability Community Sustainability Economic Health Poudre River Ecosystem/Health Environmental Health Public Health Safe Community 4 2.1 Packet Pg. 132 Attachment: Powerpoint Presentation (10368 : Water Utility Overview) History Early Water Conservation Campaign 1908 –Filter Plant 1 – Gateway Park 1870’s -First Water Works –Overland Trail Filters at Plant 1Water Wagon 5 2.1 Packet Pg. 133 Attachment: Powerpoint Presentation (10368 : Water Utility Overview) Our Customers Customer Breakdown 35,000+ ACCOUNTS •32,000+residential •3,000+ commercial •Provide water to neighboring Water Districts Customer Satisfaction •91% of customers believe our water is safe or very safe •Fort Collins Utilities scored highest in Quality and Reliability among all West Midsize Utilities •Scored greater than national average in: •Conservation •Billing and Payment Utilities Nat’l. Avg. West. Mid-size 757 742 739 JD Power Survey Overall Satisfaction Score 6 2.1 Packet Pg. 134 Attachment: Powerpoint Presentation (10368 : Water Utility Overview) Customer Programs and Services A r educed electric, water and/or wastewater rate that provides 23% off certain components of these services. Rebates, services and programs •Residential •Landscape and irrigation •Business •New development •Monitor water use •Commercial allotment management •Leak alerts •Personalized ways to save Income-Qualified Assistance Program (IQAP) Conservation and Efficiency Programs MyWater Customer Portal 7 2.1 Packet Pg. 135 Attachment: Powerpoint Presentation (10368 : Water Utility Overview) Wa ter System Overview Michigan Ditch Cache la Poudre River Joe Wright Reservoir Halligan Reservoir Colorado-Big Thompson Project via Horsetooth Reservoir Water Treatment Facility Intake fcgov.com/water101 Delivered to Customers Water Quality Lab 2.1 Packet Pg. 136 Attachment: Powerpoint Presentation (10368 : Water Utility Overview) Watershed –Monitoring and Protection 9 2.1 Packet Pg. 137 Attachment: Powerpoint Presentation (10368 : Water Utility Overview) By the Numbers –Source of Supply Michigan Ditch Joe Wright Reservoir Horsetooth Reservoir -CBT Poudre Intake •7,400 acre-feet at Joe Wright Reservoir •25,000 acre-feet of water used per year •50/50 split 1.Poudre River 2.Colorado Big- Thompson (CBT) Project •2 Poudre River intakes •3 13-mile pipelines 10 2.1 Packet Pg. 138 Attachment: Powerpoint Presentation (10368 : Water Utility Overview) Growth Management Area (GMA) Fort Collins Utilities ELCO Water District Water Treatment Facility Fort Collins N Fort Collins Loveland Water District West Fort Collins Water District Water Service Area 11 2.1 Packet Pg. 139 Attachment: Powerpoint Presentation (10368 : Water Utility Overview) Fort Collins N •50M GALLONS of water treated per day in summer •87 MGD maximum capacity •72 MG buildout capacity •8.7B GALLONS treated per year •36M GALLONS of treated water storage •170,000 PEOPLE served •$500M+ asset •High quality, reliable water supply with very few customer complaints By the Numbers –Water Treatment LH25LH49 2.1 Packet Pg. 140 Attachment: Powerpoint Presentation (10368 : Water Utility Overview) Slide 12 LH25 Add some WQL info to this slide? Check on population. Liesel Hans, 5/12/2021 LH49 updated population to reflect water service area - got from Tony in WRD Liesel Hans, 5/18/2021 2.1 Packet Pg. 141 Attachment: Powerpoint Presentation (10368 : Water Utility Overview) Water Quality Lab •20,000+ samples each year from the Wa ter Treatment Facility, distribution system, and raw water sources •Ensures water is high quality before water is delivered to customers •Serves 13+ outside organizations •Cost-effective way t o ensure quality results and response •Certified for drinking water testing by Colorado Department of Public Health and Environment •Built in 1979 –aging facility 13 2.1 Packet Pg. 142 Attachment: Powerpoint Presentation (10368 : Water Utility Overview) Maintain and Operate •546 MILES of distribution & transmission mains •35,800 WAT ER METERS •16,000 meters inside and 5,600 in crawl spaces •13,400 WAT ER VALVES •3,800 FIRE HYDRANTS •135 Backflow Inspections Annually Preventative Maintenance •~50%or 1,882 of hydrants maintained annually •~10%or 13,200 of valves maintained annually •~80 miles of water mains checked leaks annually By the Numbers –Distribution 14 2.1 Packet Pg. 143 Attachment: Powerpoint Presentation (10368 : Water Utility Overview) Fort Collins By the Numbers –Distribution 15 Condition Length of Pipe % of System Ve ry Poor 8.6 miles 2% Poor 12.8 miles 2% Fair 34 miles 6% Good 11 2.6 miles 21% Excellent 378 miles 69% Age of Water Mains 100+ years 80-100 years 60-80 years 40-60 years Less than 40 years Unknown age 2.1 Packet Pg. 144 Attachment: Powerpoint Presentation (10368 : Water Utility Overview) Aging Infrastructure Cracked Water Meter Galvanized Water Service with Lead Gooseneck Mineral Tuberculation Inside 1920’s 4” Main Water Main Break (Prospect/Lemay) Failing HVAC at the Water Quality Lab Flowmeter at Tr eatment Plant Pipe Inspection Cybersecurity 16 2.1 Packet Pg. 145 Attachment: Powerpoint Presentation (10368 : Water Utility Overview) Aging Infrastructure Wa ter Main Leaks/Breaks (#/100 Miles) •78 (14.3) in 2020 •96 (17.6) in 2019 •76 (13.9) in 2018 15 Leaks/Breaks per 100 miles is the Partnership for Safe Water annual goal. 17 2.1 Packet Pg. 146 Attachment: Powerpoint Presentation (10368 : Water Utility Overview) Climate Change and Resilience 18 2.1 Packet Pg. 147 Attachment: Powerpoint Presentation (10368 : Water Utility Overview) Asset Reliability and Management Asset Reliability Risk of Failure = Consequence x Likelihood Root Cause Failure Analysis Operational Optimization Capital Improvement Forecasting Asset Reliability Risk of Failure = Consequence x Likelihood Root Cause Failure Analysis Operational Optimization Capital Improvement ForecastingWater Main Break Heat Map 19LH32 2.1 Packet Pg. 148 Attachment: Powerpoint Presentation (10368 : Water Utility Overview) Slide 19 LH32 add in data management - highlight AMI data management work, ability to make better decisions, measure, track, benchmark Liesel Hans, 5/12/2021 2.1 Packet Pg. 149 Attachment: Powerpoint Presentation (10368 : Water Utility Overview) Carbon Footprint Reduction •79 Kw unit •Operates 24/7 on the Horsetooth supply •Estimated net annual energy production of 548,545 kW h •Provides 21% of total annual energy use at the Water Treatment Facility •95 Kw output •Provides 5% of total annual energy use at the Water Treatment Facility •Water distribution fleet is ~30% alternative fuel Micro-Hydro Electric Power Solar Alternative Fuel Fleet 20 2.1 Packet Pg. 150 Attachment: Powerpoint Presentation (10368 : Water Utility Overview) Environmental Initiatives Environmental Leadership Program •Gold Leader AW WA -Partnership for Safe Water •Presidents Award for Tr eatment •Directors Award for Distribution ISO 14001:2015 Certified •40% reduction in greenhouse gases at the treatment plant •20% reduction in power usage •Pilot to divert 500 tons of solids per year Environmental Management System 21 2.1 Packet Pg. 151 Attachment: Powerpoint Presentation (10368 : Water Utility Overview) Water Resource Strategies Planning for the Future Conservation/Efficiency Demand Management 22 Monitoring 2.1 Packet Pg. 152 Attachment: Powerpoint Presentation (10368 : Water Utility Overview) Halligan Water Supply Project 23 Water Storage by Provider Storage available to water provider CBT storage (pro rata) 2.1 Packet Pg. 153 Attachment: Powerpoint Presentation (10368 : Water Utility Overview) Future Needs and Challenges •Capital Improvement Plans (CIP)/asset replacement •Water supply and water quality •Post-wildfire watershed recovery and restoration •Climate change •Increased water storage and drought protection:Halligan Water Supply Project •Cybersecurity •Increasing water purchase and capital construction costs •Changes in development revenues: Plant Investment Fees (PIFs) 24 2.1 Packet Pg. 154 Attachment: Powerpoint Presentation (10368 : Water Utility Overview) How Much Does Water Service Cost?25 $- $10 $20 $30 $40 $50 $60 $70 $80 $90 $100 2013 2014 2015 2016 2017 2018 2019 2020 2021 Residential Water Monthly Bill Longmont Greeley Loveland Ft Collins Boulder Colorado Springs Fort Collins Utilities 2.1 Packet Pg. 155 Attachment: Powerpoint Presentation (10368 : Water Utility Overview) Water Fund Capital Improvement Plan 26 $0 $10,000,000 $20,000,000 $30,000,000 $40,000,000 $50,000,000 $60,000,000 $70,000,000 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030Annual Capital InvestmentPrior Appropriations Water Distribution Water Production Water Resources Ave. Capital Investment 2021-2030 Historical Average Spend 2.1 Packet Pg. 156 Attachment: Powerpoint Presentation (10368 : Water Utility Overview) Water Fund Operating Income (2010-2030)27 ($5,000,000) $0 $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 $30,000,000 $35,000,000 $40,000,000 2010 2012 2014 2016 2018 2020 2022 2024 2026 2028 2030 OPERATING INCOME Total Operating Revenue Total Operating Expenses 2.1 Packet Pg. 157 Attachment: Powerpoint Presentation (10368 : Water Utility Overview) Finance 28 •Modest rate adjustments will be necessary over the coming decade •Operating income diminishes in the future •Tw o debt issuances are expected to be necessary for significant infrastructure improvements over the coming decade 2.1 Packet Pg. 158 Attachment: Powerpoint Presentation (10368 : Water Utility Overview) 29How It Happens 2.1 Packet Pg. 159 Attachment: Powerpoint Presentation (10368 : Water Utility Overview) How It Happens 30 2.1 Packet Pg. 160 Attachment: Powerpoint Presentation (10368 : Water Utility Overview) How It Happens 31 2.1 Packet Pg. 161 Attachment: Powerpoint Presentation (10368 : Water Utility Overview) How It Happens 32 2.1 Packet Pg. 162 Attachment: Powerpoint Presentation (10368 : Water Utility Overview) How It Happens 33 2.1 Packet Pg. 163 Attachment: Powerpoint Presentation (10368 : Water Utility Overview) How It Happens 34 2.1 Packet Pg. 164 Attachment: Powerpoint Presentation (10368 : Water Utility Overview) How It Happens 35 2.1 Packet Pg. 165 Attachment: Powerpoint Presentation (10368 : Water Utility Overview) How It Happens 36 2.1 Packet Pg. 166 Attachment: Powerpoint Presentation (10368 : Water Utility Overview) How It Happens 37 2.1 Packet Pg. 167 Attachment: Powerpoint Presentation (10368 : Water Utility Overview) How It Happens 38 2.1 Packet Pg. 168 Attachment: Powerpoint Presentation (10368 : Water Utility Overview) How It Happens 39 2.1 Packet Pg. 169 Attachment: Powerpoint Presentation (10368 : Water Utility Overview) How It Happens 40 2.1 Packet Pg. 170 Attachment: Powerpoint Presentation (10368 : Water Utility Overview) How It Happens 41 2.1 Packet Pg. 171 Attachment: Powerpoint Presentation (10368 : Water Utility Overview) How It Happens 42 2.1 Packet Pg. 172 Attachment: Powerpoint Presentation (10368 : Water Utility Overview) 43 Are there questions or feedback about the strategic alignment of the Potable Water Utility? 2.1 Packet Pg. 173 Attachment: Powerpoint Presentation (10368 : Water Utility Overview) For More Information, Visit THANK YOU! fcgov.com/water 2.1 Packet Pg. 174 Attachment: Powerpoint Presentation (10368 : Water Utility Overview) DATE: STAFF: June 8, 2021 Liesel Hans, Interim Deputy Utilities Director WORK SESSION ITEM City Council SUBJECT FOR DISCUSSION Safe Water Action Program. EXECUTIVE SUMMARY The purpose of this work session is to discuss the Safe Water Action Program (SWAP), which is a public health initiative from Fort Collins Utilities to accelerate the identification and replacement any remaining aging galvanized water service lines (utility-owned portion) and lead goosenecks. It is also an effort to educate the public about lead in drinking water, how to identify potential sources of risk, and easy actions anyone can take to reduce risk. While our risk is very low, SWAP protects public health and proactively maintains the safety and reliability of drinking water. GENERAL DIRECTION SOUGHT AND SPECIFIC QUESTIONS TO BE ANSWERED 1. Does Council support the public engagement approach and upcoming next steps? 2. What additional information would Council and the community find valuable? BACKGROUND / DISCUSSION Fort Collins Utilities (Utilities) is committed to providing safe, high -quality, reliable drinking water to all customers. We continually monitor our water quality from source to tap and take pride in being able to offer some of the best drinking water in the country. For many decades, public health experts have focused on managing lead exposure through sources like lead paint, which is still the most common and lik ely source. In recent years, however, there has been concern and increasing awareness nationwide about the potential presence of lead in drinking water. More communities are taking steps to identify and address any potential sources of risk. Managing lead in water is a public health responsibility that is shared among water utilities, consumers, manufacturers, regulators, plumbers and more. Lead does not come from our water supplies and there is no lead in the water produced by the Utilities Water Treatment Facility. If it is present in water, it will come from the plumbing leading to or inside a home. While there are related regulations, SWAP is a proactive initiative not currently required by regulation. The Environmental Protection Agency’s (EPA) lead and copper regulations currently under review and the revision may impact our operations. More information about the Lead and Copper Rule (LCR) is included later in this document. SAFE WATER ACTION PROGRAM The Safe Water Action Program (SWAP) will accelerate the identification and replacement of any remaining galvanized water service lines. Galvanized lines are steel pipes coated with zinc to prevent rust or corrosion and need to be replaced due to age and condition. They are increasingly brittle and pro ne to leaks and breaks. All service lines have a short segment called a “gooseneck” or “pigtail” that connects the service line to the water main; these are generally 1.5 to 2 feet long. It is expected that these galvanized service lines will have a gooseneck made of lead, a material that was historically common to use in plumbing for its flexible properties. 3 Packet Pg. 175 June 8, 2021 Page 2 These were only installed on ¾-inch or smaller pipes, typically in the residential areas in the Old Town neighborhoods (Attachment 1). Project Goals: • Protect public health, water service and water quality throughout project. • Swap any galvanized lines and goosenecks with safe, durable materials. • Educate public about all sources of lead in drinking water and ways to reduce risk. • Maintain and/or improve trust in Utilities and safety of drinking water. • Inventory service line materials. • Promote equity and inclusion in both processes and outcomes. Strategic Alignment: SWAP directly supports the following City strategic objectives: • ENV 4.4 to provide a reliable, high-quality water supply. • SAFE 5.1 to improve overall community safety while continuing to increase the level of public trust and willingness to use emergency services. • NLSH 1.4 to advance equity for all, leading with race, so that a person’s identity or identities is not a predictor of outcomes. How many service lines need to be replaced? Some water service installations pre-date reliable record-keeping. Further, because property owners, not Utilities, own the water service lines beyond the curb stop, information on what that portion of the service line is made of is inconsistent, unreliable, or unknowable. See a graphic diagram of a water service line with delineation of the ownership and management responsibilities. Note that goosenecks are only on the Utilities-owned and managed portion of the water service line. (Attachment 2) The good news is that we do know that the vast majority (nearly 98%) of Utilities’ ~34,000 water service lines are known to be made of copper, PVC or other materials that do not contain lead. The Utilities-owned portion is solely made of copper. The remaining ~2% of the utilities -owned water service lines are either galvanized (~80) or made of undetermined (~650) materials. Note that we are confident t hat these “undetermined” materials are not lead, but we need to assess if they are copper, PVC or galvanized. Staff has not encountered a lead service line in our decades of service to the City. There is less known about the customer -owned portion of the service lines. To date, Utilities staff estimates that approximately 600 lead goosenecks have already been found and replaced during planned water line replacement or maintenance projects since the 1950’s. Below is additional information and an estimate d timeline of service line materials used in the Fort Collins Utilities service area: • 1883-1950’s: Galvanized pipes • 1950’s-present: Copper pipes • 1980’s: “Blue poly” plastic pipes began to be used on customer portion of service lines, and production stopped in 1996 after material started to fail • 1984: Utilities launched Corrosion Control Program (more information below) • 1992: First year of Utilities lead and copper testing (more information below) • 1999: Utilities started publication of our Drinking Water Quality Report, also known as a Consumer Confidence Report • 2000’s: HDPE/PEX (more durable plastic, commonly called PVC too) began to be used on customer portion 3 Packet Pg. 176 June 8, 2021 Page 3 of service lines How can lead get into drinking water? There is no lead in the drinking water produced by the Utilities Water Treatment Facility. In general, lead can enter drinking water when plumbing that contains lead corrodes or deteriorates allowing the lead to seep into the water. This can include pipes or fixtures inside the hom e or solder that connects copper pipes. This is more likely to occur when water sits in pipes for extended periods of time, generally overnight or when water is not used for several hours at a time. A lead gooseneck does not necessarily mean there is ele vated levels of lead in the water, but it may be a contributing factor. Studies have shown that lead goosenecks have little to no measurable impact on lead levels in drinking water due to the small volume of water in a gooseneck. We are working to refine o ur understanding of the risk in our community and anticipate having a better understanding after completing the first phase of SWAP in fall of 2021. This will be a pilot effort to investigate an initial set of homes. The pilot will include testing the wate r quality before any service line investigation and after the replacement if the investigation reveals the presence of a galvanized service line and lead gooseneck. Our most important and effective tool to protect the community is our long -standing corrosion control program. Our corrosion control program has been in place since 1984, before any federal requirements, and includes monitoring and adjusting the pH and alkalinity of the water before it is distributed to customers for consumption. These are the two key properties that determine how corrosive the water is. By keeping the pH and alkalinity stable and at the right level, it keeps pipes from corroding and possibly leaching impurities into the water. Why do we care about lead in drinking water? There is no known safe level of lead exposure, and lead can build up in the body over time. Children younger than six years old are most at risk due to their rapid rate of growth and ongoing brain development. Exposure to lead can cause damage to the brain, nervous system, red blood cells, and kidneys. Lead also has the potential to cause lower IQs, hearing impairments, reduced attention span, hyperactivity, developmental delays, and poor classroom performance. Pregnant women and their fetuses are especially vulnerable to lead exposure since lead can significantly harm the fetus, causing lower birth weight and slowing normal mental and physical developments. The Environmental Protection Agency (EPA) requires all water providers to test a sample of household s annually; more on this is included in the next section below. For reference, the EPA action level is 15 parts per billion (ppb). This is like 15 drops of water in a swimming pool. The Food and Drug Administration (FDA) limit for bottled water is 5 ppb. WATER QUALITY TESTING and REGULATIONS First, here is information and a timeline of relevant drinking water regulations: • 1974: Safe Drinking Water Act. Prior to this there were no federal drinking water standards or regulations. Legislation set national drinking water standards by imposing regulations on contaminants that are detrimental to public health and created reporting requirements and other enforcement standards. • 1986: Amendments to the Safe Drinking Water Act banned the use of lead-containing solders and prohibited the use of pipes, solder or flux that were not “lead free” in public water systems or plumbing in facilities providing water for human consumption. At the time "lead free” was defined as solder and flux with no more than 0.2% lead and pipes with no more than 8%. • 1991: Lead and Copper Rule developed by the EPA to control lead and copper in drinking water. This legislation established action levels for Lead (15 ug/L) and Copper (1,300 ug/L) concentrations, corrosion control treatment for public water systems, customer tap monitoring programs, public education on sources, prevention and health effects, and more. 3 Packet Pg. 177 June 8, 2021 Page 4 • 1996: Amendments to the Safe Drinking Water Act required publication of consumer confidence reports, that water facility operators have certain certifications, and that utilities implement source water assessment/protection programs. • 2011 Congress passed the Reduction of Lead in Drinking Water Act (RLDWA) revising the definition of “lead - free” to 0.25% or less by weight. • 2021: An update to the Lead and Copper Rule is expected to be finalized. Staff expects the revised rule may require some new actions and potential changes to the water sampling program. Current Lead and Copper Rule (LCR) Testing Program and Results Since the EPA first enacted the LCR in 1991, Fort Collins has conducted annual testing for lead and copper in customer homes. Because Fort Collins does not have full lead service lines, the State of Colorado (primacy agency) identified single-family homes built between 1983-1986 as the top priority potential source of lead in drinking water due to the fact these homes had high likelihood of having lead-containing solder in the premise plumbing. Based on population served by our water system, we are required to collect 50 samples per year from this subset of homes. All samples are collected at the customer tap and capture the first liter of water following a minimum of a 6-hour stagnation period (typically overnight). This sampling program is designed to test in-home sources of lead and does not test for or consider or provide information about other possible sources of lead in the distribution system, like lead goosenecks. All samples are analyzed at the Fort Collins Water Quality Lab and all results are rep orted to the customer and State of Colorado within 30 days from analysis. Our results have always been far below the EPA Action Levels and are published and shared annual in the Water Quality Report (also sometimes called a “Consumer Confidence Report”). In 2020, the EPA published a proposed Revised Lead and Copper Rule (RLCR). Changes in the new RLCR are focused on enhancing protections for the most impacted areas (those with full lead service lines), strengthening requirements for drinking water treatment and lead service line replacement, improving communication, and protecting children in schools and childcare facilities. When the RLCR is published, Utilities will assess and share any changes to our operations and water sampling programs. Staff anticipa tes that some of the new requirements are already standard practice in Fort Collins. COMMUNITY PARTNERSHIP Managing lead in water is a public health responsibility that is shared among water utilities, consumers, manufacturers, regulators, plumbers and more. Further, homeowners share in the ownership and responsibility to maintain water service infrastructure. Through awareness of the potential risks and working together to ensure our infrastructure is in safe, working condition, we can protect our com munity. What are potential ways lead can get into drinking water? • Plumbing fixtures: Most faucets purchased prior to 1997 were constructed of brass or chrome -plated brass, which contain up to 8 percent lead. The most recent legislation, called “Get the Lead Out,” mandates that after January 4, 2014, all faucets purchased will contain no more than a weighted average of 0.25 percent lead in relation to wetted surface. o Legislation only covers products intended for potable drinking water. Fixtures can c ontain lead if intended for industrial or other non-potable purpose. o Other countries’ products may have different standards than the United States. • Lead Solder: Solder is a metal that is melted and used to join two pieces of pipe. Prior to 1987, lead solder was commonly used in household plumbing. Solder in canned goods is still used in some other countries. • Lead Gooseneck: A gooseneck is a small connector attached to a water service line. Historically, these were made of lead because lead is very flexible and made it much easier to connect to the water main. Goosenecks are typically about 1.5-2 feet long. 3 Packet Pg. 178 June 8, 2021 Page 5 • Galvanized Service Line: These pipes can be a long-term source of lead as the “galvanized” surface zinc coating can contain up to 2% lead, and as the pipes corrode, lead particles “upstream” can attach and be released later. However, studies have shown these pipes need to break down significantly and even then, with an appropriate pH level of the water, the lead is highly unlikely to leach out of the coating. Other Sources Some other communities face a greater risk of elevated lead levels due to the presence of full or partial lead service lines. Fortunately, there are no known lead service lines in the Utilities' service area. Other sources include lead paint (homes built before 1978), lead-contaminated soils, and exposure to lead through certain industries. Residents should take time to assess if they may be at risk of exposure from these sources. What precautions can help manage potential risks? Studies show that with an effective corrosion control program, like in Fort Collins, the risk only increases when the water has been sitting for an extended period of time, like overnight. Some steps a resident can take to effectively eliminate risk include: • Run the water. Before drinking or using water for cooking, flush your home's pipes. Let the COLD water run for about two minutes (or until it runs noticeably colder) if water has been sitting in the service line for longer than six hours. A shower or load of laundry would be more than enough to flush the pipes. This water can be collected and used to water plants or landscapes. • Always use cold water to drink, cook and do things like make coffee or baby formula. You cannot boil lead out of water. • Regularly clean faucet aerators/faucet screens. Sediment, debris, and lead particles can collect in your aerator. If lead particles are caught in the aerator, lead can get into your water. • Use a filter. Install a water filter that is designed and certified to remove lead. Read the directions to learn how to properly install and use your cartridge and when to replace it. Using the cartridge after it has expired can make it less effective at removing lead. Never run hot water through the water filt er. Steps to assess level of risk and exposure: • Assess other potential sources of exposure, like lead paint. • Get the water tested. The Water Quality Lab will prioritize tests for homes within the SWAP scope. • Get a blood test. The only way to truly assess any impact from any exposure to lead is to get a blood test. Table 1 below outlines the additional risk-reducing strategies residents can take for each potential source of exposure. Table 1: Potential Sources of Exposure through Drinking Water Source Tailored risk-reducing strategies Does Utilities Corrosion Control Program lower risk? Will SWAP address this risk? Plumbing Fixtures • Replace old fixtures Yes Only via education Lead Solder • Replace old plumbing lines Yes Only via education Lead Gooseneck • Use the SWAP search tool to assess risk Yes Yes Galvanized Service Line • Use the SWAP search tool to assess risk • Replace customer-owned portion of galvanized service line Yes Yes - partially* * Note that while SWAP’s focus is on the Utilities-owned portion of the water service line infrastructure, we want to 3 Packet Pg. 179 June 8, 2021 Page 6 support our customers in replacing their portion of the service line if it is a galvanized line. This is ultimately an important home maintenance task, as the increasingly brittle nature could cause breaks or leaks and may result in wasted water and/or property damage. We recognize this may be a significant and unanticipated expense. Staff are exploring a variety of options and intend to be able to provide options in the update in early 2022 as noted in the Next Steps section below. SWAP COMMUNICATIONS and ENGAGEMENT An effective public health initiative must have a thoughtful communications and engagement plan. Three of SWAP’s key goals are to: • Educate the public about all sources of lead in drinking water and ways to reduce risk. • Maintain and/or improve trust in Utilities and safety of drinking water. • Promote equity and inclusion in both processes and outcomes. Throughout 2021, the SWAP Team is developing a comprehensive communications and engagement plan that will provide: 1) general education to the public about our water quality and lead in drinking water; and 2) direct communication with customers who are in the SWAP scope. The plan aims to strengthen trust between customers and the utility, engage a diverse set of stakeholders, and apply an equity lens on engagement and communication tactics. Staff has already started to engage public health experts and has received valuable guidance. For example, two suggestions included: • Do not solely communicate with the potentially impacted households, share the information with everyone and let people know that they do not face the specific risk addressed by SWAP. As a result we intend to provide broad communications and education around lead and drinking water risks, provide a tool for residents to determine their risk, and let key stakeholders like daycares know that they do not need to worry about this specific risk. • Lean on trusted community leaders to help share and reinforce the message. Not everyone will turn to Utilities for information, so by engaging and informing others in the community like pediatricians or faith leaders, we can still ensure the message is shared and information is consistent. Focus Groups: A major next step in the communication and engagement work is to conduct focus groups to gather feedback on communication approaches and tactics. This feedback is especially important to ensure we reach the diverse population in the SWAP area. Initially, we know that there is wide range of incomes levels, some Spanish speakers, and a relatively greater proportion of residents who are renters. The first focus group will be with internal City partners including Environmental Services, Economic Health, Neighb orhood Services, Building Services, and Housing Catalyst. The second focus group will be with external stakeholders like Colorado State University, Poudre School District, local medical offices, faith-based organizations within the SWAP area, and more. SWAP is working on partnering with local community agencies such as religious institutions and local pediatricians’ offices, among others, to provide useful tools that they can utilize as a resource to those directly impacted by the SWAP program. After these focus groups and other conversations with stakeholders, the SWAP team will develop the variety of communications materials, messaging, and other engagement strategies to conduct an effective public health outreach plan. Boards and Commissions: The SWAP team intends to engage boards and commissions and is starting with the Water Commission in June. Equity: The SWAP team is incorporating an equity lens from the beginning of the effort. Some initial ideas that the team is focusing on to ensure the process and outcome is equitable include: 3 Packet Pg. 180 June 8, 2021 Page 7 • Prioritize full Spanish translation of all print communications; • Broad communications and education - not just those directly affected by the work; • Broad stakeholder engagement; • Conducting public and staff focus groups for feedback; • Use data like income level, presence of children, and other considerations to inform prioritization of replacements; and • Work to understand types of households that may not trust drinking water. BUDGET and RESOURCES The City’s Budgeting for Outcomes (BFO) 1-year budgeting cycle for 2021 allocated $500,000 to develop a project plan, including a comprehensive communications and engagement plan, and to conduct a pilot project to investigate and replace an initial subset of the service lines. Based on current information and assumptions, and if all ~730 services need to be replaced, we estimate an overall project cost range of $4 - $8 million. The pilot project, planned for Fall 2021, will provide additional information that will allow staff to refine this estimate. We fully expect that we will not need to replace all identified services; we expect to find that some services are already made of a modern material, but we simply do not have the supporting documentation to understan d how many of the ~730 service lines will need to be replaced. Final costs will depend on multiple factors including: • Final number of galvanized lines o Only about 80 are known to be galvanized with the remaining undetermined • Overall timeline and escalation of costs • Ability to conduct investigations and replacements collaboratively with other planned work (e.g. in conjunction with a planned water main replacement project). Staff submitted an offer for the 1-year 2022 BFO cycle for $1 million to continue this work. Overall implementation timeline of the full SWAP Program will be informed by the pilot project. This roll -out schedule will be highly influenced by the number of actual replacements required, based upon the initial information collected during the pilot. After the pilot, staff will recommend a timeline for completion of the estimated remaining service line replacements. NEXT STEPS • June (planned) 2021 o Initial Focus Groups o Communications with SWAP households o Work session with the City Water Commission • Summer 2021 o Develop communications and education materials o Launch public education campaign • Fall 2021 o Launch pilot investigation and replacement program ▪ Conduct water quality sampling before and after any replacements • Early 2022 o Share results of pilot with key stakeholders (including Council) 3 Packet Pg. 181 June 8, 2021 Page 8 o Develop Full Implementation Plan ▪ Incorporate new information and lessons learned from pilot program MORE INFORMATION For more information about the Safe Water Action Plan: Website: fcgov.com/swap Email: swap@fcgov.com Voicemail: 970-416-8032, V/TDD 711 ATTACHMENTS 1. Galvanized Line Map (PDF) 2. Ownership, Responsibility, Repair Illustration (PDF) 3. Powerpoint Presentation (PDF) 3 Packet Pg. 182 N Auxiliary aids and services are available for persons with disabilities. | 20-22631I-25Fort Collins Growth Management Area HORSETOOTH RESERVOIR SAFE WATER ACTION PROGRAM (SWAP) REPLACING GALVANIZED PIPESUtilities FORT COLLINS UTILITIES WATER SERVICE AREA Prospect Drake Horsetooth Harmony Mulberry Laporte ShieldsCollegeTaft HillOverlandLemayTimberlineZieglerAREAS THAT MAY HAVE GALVANIZED AND UNKOWN WATER SERVICE LINES For more information: FCGOV.COM/SWAP, 970-416-8032 • Galvanized service lines are primarily located in the older parts of town (indicated by orange on the map). Not all homes in these areas are impacted. • Fewer than 1,000 of Fort Collins Utilities’ 34,000 water service lines are of unknown material and 100 or fewer are known to be galvanized. •Homes with galvanized service lines may have lead goosenecks. • The areas highlighted in the map are not all-inclusive. There • The drinking water provided by Fort Collins Utilities does not contain lead. Fort Collins Utilities’ treated drinking water consistently surpasses state and federal standards for purity. If lead is present in water, it comes from the plumbing leading to or inside a home. • Look up individual addresses at fcgov.com/SWAP. N Esta información puede ser traducida, sin costo para usted, 970-212-2900. Auxiliary aids and services are available for persons with disabilities. V/TDD 711 | 20-22631I-25Fort Collins City Limits Fort Collins City Limits HORSETOOTH RESERVOIR SAFE WATER ACTION PROGRAM (SWAP)Utilities FORT COLLINS UTILITIES WATER SERVICE AREA Prospect Drake Horsetooth Harmony Mulberry Laporte ShieldsCollegeTaft HillOverlandLemayTimberlineZieglerAREAS THAT MAY HAVE GALVANIZED AND UNKOWN WATER SERVICE LINES For more information: FCGOV.COM/SWAPUtilities Fort Collins Growth Management Area ATTACHMENT 1 3.1 Packet Pg. 183 Attachment: Galvanized Line Map (10348 : Safe Water Action Program) WATER SERVICE Line Ownership and Responsibility WATER SERVICE LINE OUTSIDE METER & SHUT OFF VALVE INSIDE METER & SHUT OFF VALVE Auxiliary aids and services are available for persons with disabilities. 20-22146 GOOSE- WATER SERVICE LINE CURB STOP CURB BOX WATER MAIN ATTACHMENT 2 3.2 Packet Pg. 184 Attachment: Ownership, Responsibility, Repair Illustration (10348 : Safe Water Action Program) Safe Water Action Program (SWAP) June 8, 2021 Replacing Galvanized Pipes Dr. Liesel Hans Interim Utilities Deputy Director ATTACHMENT 3 3.3 Packet Pg. 185 Attachment: Powerpoint Presentation (10348 : Safe Water Action Program) City Strategic Plan Alignment Livability Community Sustainability Provide a high- quality water supply Environmental Health Public Health Safe Community 2 3.3 Packet Pg. 186 Attachment: Powerpoint Presentation (10348 : Safe Water Action Program) Questions for City Council 1.Does Council support the public engagement approach and upcoming next steps? 2.What additional information would Council and the community find valuable? 3 3.3 Packet Pg. 187 Attachment: Powerpoint Presentation (10348 : Safe Water Action Program) 4 3.3 Packet Pg. 188 Attachment: Powerpoint Presentation (10348 : Safe Water Action Program) 5 3.3 Packet Pg. 189 Attachment: Powerpoint Presentation (10348 : Safe Water Action Program) What is SWAP ? An effort to “swap” any remaining aging galvanized service lines (utility-owned portion) and short (6-18") connectors, called goosenecks. Some goosenecks may be made of lead. Who? Mostly single-family residences in the Old To wn area. How many? Less than 1,000 (less than 2.5% of all service lines). Why now? Goal is to accelerate the work. It’s the right thing to do. Is the water safe? Current data supports that the risk is very low, and we will seek out additional ways to hone our understanding of the risk. SWAP 6 Safe Water Action Program (SWAP) 3.3 Packet Pg. 190 Attachment: Powerpoint Presentation (10348 : Safe Water Action Program) 7Timeline Water utility started Plumbing code (switch from galvanized to copper) Safe Drinking Water Act (SWDA) Blue Poly used on customer side Launch Corrosion Control Program SDWA amendment banning lead-containing solders & pipes First Lead and Copper Rule (LCR) PEX/HDPE used on customer side Pending changes to LCR 1883 1991 1986 1984 1980s 1974 1950s Present 2000s Fort Collins-specific timeline Federal legislation timeline 3.3 Packet Pg. 191 Attachment: Powerpoint Presentation (10348 : Safe Water Action Program) 8SWAP Goals & Commitments Protect public health, water service and water quality throughout project Swap any galvanized lines and goosenecks with safe, durable materials Educate public about all sources of lead in drinking water and ways to reduce exposure Maintain and/or improve trust in Utilities and safety of drinking water Inventory service line materials Promote equity and inclusion in both processes and outcomes 3.3 Packet Pg. 192 Attachment: Powerpoint Presentation (10348 : Safe Water Action Program) 9Who may be Impacted? 123 Address Street123 Address Street 123 Address Street123 Address Street 123 Address Street 123 Address Street fcgov.com/swap 3.3 Packet Pg. 193 Attachment: Powerpoint Presentation (10348 : Safe Water Action Program) Replacing customer-owned portion Pursuing avenues to support customers in replacing their portion of their service line. Proactive maintenance of critical infrastructure. 10 3.3 Packet Pg. 194 Attachment: Powerpoint Presentation (10348 : Safe Water Action Program) 11 •Public Health and Drinking Water •High quality, safe drinking water •All potential sources of risk & ways to reduce risk Public Engagement •Prioritize Spanish translation of all materials •Consider equity factors in prioritization •Work with internal equity champions and leaders •Learn from industry and public health experts •Initial notification 2021 •Ti mely communications leading up to and during investigation/replacement work •Water quality sampling before and after •Website, email, phone Public Education Campaign Equity SWAP Communications 3.3 Packet Pg. 195 Attachment: Powerpoint Presentation (10348 : Safe Water Action Program) Public Engagement External: •Yo uth, women, family medical practices •Housing partners •Schools, daycares •Community leaders Internal: •Neighborhood Services •Economic Health •Healthy Homes Program •Housing Catalyst •Building Services 12 Focus Groups 3.3 Packet Pg. 196 Attachment: Powerpoint Presentation (10348 : Safe Water Action Program) Resources BFO 2021: $500k •Develop program plan and initial funds to start the “in the ground” work (pilot project fall 2021) If all services need to be replaced: Estimated total cost range = $4M-8M Final costs will depend on: •Number of galvanized lines found •Overall timeline and escalation of costs •Ability to conduct investigations and replacements collaboratively with other planned work Complete timeline will be informed by pilot phase in Fall 2021 13 3.3 Packet Pg. 197 Attachment: Powerpoint Presentation (10348 : Safe Water Action Program) 14Steps to Reduce Exposure and Risk An d: •Replace older fixtures and plumbing lines •Use SWAP search tool •Assess potential exposure from other sources like lead paint If still concerned: •Get a blood test If water has been sitting longer than 6 hours, e.g. overnight 3.3 Packet Pg. 198 Attachment: Powerpoint Presentation (10348 : Safe Water Action Program) 15Next Steps Initial focus groups Contact SWAP households directly Water Commission June Develop outreach materials Launch public education campaign Summer Launch pilot investigation and replacement program Fall Propose full SWAP plan 2022 3.3 Packet Pg. 199 Attachment: Powerpoint Presentation (10348 : Safe Water Action Program) For More Information, Visit THANK YOU! Fcgov.com/SWAP | swap@fcgov.com | 970-416-8032 | V/TDD 711 16 3.3 Packet Pg. 200 Attachment: Powerpoint Presentation (10348 : Safe Water Action Program)