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HomeMy WebLinkAboutCOUNCIL - COMPLETE AGENDA - 04/12/2022 - WORK SESSION COMPLETE AGENDA City of Fort Collins Page 1 Jeni Arndt, Mayor Emily Francis, 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 Kelly DiMartino Anissa Hollingshead City Attorney Interim 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 970.221.6515 (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, par a que puedan acceder a los servicios, programas y actividades de la Ciudad. Para asistencia, llame al 970.221.6515 (V/TDD: Marque 711 para Relay Colorado). Por favor proporcione 48 horas de aviso previo cuando sea posible. City Council Work Session April 12, 2022 6:00 PM A) CALL TO ORDER. B) ITEMS FOR DISCUSSION 1. Our Climate Future. (staff: Honore Depew, John Phelan; 15 minute presentation; 40 minute discussion) The purpose of this item is to discuss actions and progress since adoption of Our Climate Future in 2021 and seek guidance on the Council Priority to Explore climate emergency messaging and action in advance of planned community engagement. 2. Sustainable Funding Plan. (staff: Jennifer Poznanovic; 15 minute presentation; 60 minute discussion) The purpose of this work session is to discuss specific identified funding needs as a first step in determining potential revenue sources. Four specific funding needs have been identified through masterplans and Council and community priorities. These include parks and recreation, transit, housing and climate plans. Identified annual shortfalls range from six to ten million per need. City of Fort Collins Page 2 3. Single Family Trash, Recycling and Compost Contracting. (staff: Lindsay Ex, Caroline Mitchell; 15 minute presentation; 60 minute discussion) The purpose of this item is to address Council’s priority (“Explore a Districted System for Garbage, Recycling and Compost”) by providing Council with an overview of trash, recycling and compost contracting for single family homes, an update on community engagement conducted thus far, and seek feedback on next steps for this topic. C) ANNOUNCEMENTS. D) ADJOURNMENT. DATE: STAFF: April 12, 2022 Honore Depew, Sr. Mgr. Environmental Sustainability John Phelan, Energy Services Manager Jackie Kozak-Thiel, Chief Sustainability Officer Kendall Minor, Utilities Executive Director WORK SESSION ITEM City Council SUBJECT FOR DISCUSSION Our Climate Future. EXECUTIVE SUMMARY The purpose of this item is to discuss actions and progress since adoption of Our Climate Future in 2021 and seek guidance on the Council Priority to Explore climate emergency messaging and action in advance of planned community engagement. GENERAL DIRECTION SOUGHT AND SPECIFIC QUESTIONS TO BE ANSWERED 1. What feedback do Councilmembers have on the implementation of Our Climate Future? 2. What feedback do Councilmembers have on how implementation supports Council’s Priority to Explore climate messaging and action? BACKGROUND / DISCUSSION It has been one year since Council adopted Our Climate Future (OCF), an integrated update to the Climate Action Plan, Energy Policy, and Road to Zero Waste. OCF reinforces Fort Collins’ deep commitment to mitigating and adapting to climate change and meeting energy and waste goals with a people -first systems approach, meaning that community members’ voices and priorities are at the center of solutions. The Our Climate Future (OCF) plan was developed over a year and half with extensive equity -centered engagement work, three Council Work Sessions, and significant community leadership. Over 1,000 community members engaged and provided input on community and personal priorities related to solutions and barriers to becoming a more sustainable community. This feedback defined a community vision for a sustainable Fort Collins and led to the OCF framework of thirteen Big Moves. These Big Moves are intentionally connecting the community’s words to the transformational outcomes which will drive successful achievement of Fort Collins’ goals for climate, energy, and waste. (Attachment 1) When we redesign our efforts to put people, their respective communities, and community -defined priorities at the center of our approach, with technical solutions serving and uplifting those priorities, climate action becomes a catalyst for addressing many interconnected challenges, from housing affordability to a healthy economy, to convenient ways to get around. What this means in practice is a recognition that the City continues to be an important contributor to achieving the sustainable future our community desires, and all community members, organizations, and businesses need to co-lead solutions to achieve Council-adopted 2030 and 2050 goals. To scale up who we engage and what we can achieve, the implementation of OCF is an intentional effort to trans form both what we are doing and how we are doing it. This implementation is driving new models for community partnership, with both individuals and organizations. These new models are not simply focused on involvement but put a shared leadership approach into practice that can drive greater outcomes to simultaneously address mitigation, resilience, and equity. B.1 Packet Pg. 3 April 12, 2022 Page 2 OCF Alignment with Council Priorities The OCF framework of Big Moves aligns with multiple Council Priorities. While the priority of Explore climate emergency messaging and action is clearly connected; Table 1 below shows the relationship between Council Priorities and specific Big Moves. This reinforces the horizontal connections of our climate, energy, and waste goals with the community’s vision for a sustainable future and with adopted Council Priorities. Table 1: Council Priorities and Our Climate Future Big Moves Council Priority Related OCF Big Move(s) Explore climate emergency messaging and action All Advance transit initiatives that remove barriers 4 - Convenient Transportation Choices Advance Regionalism - collaboration regionally while maintaining the unique character of Fort Collins 1 - Shared Leadership and Community Partnership Accelerate composting 2 - Zero Waste Neighborhoods Districted system for garbage, recycling and compost 2 - Zero Waste Neighborhoods Protect and Enhance Instream River Flows 3 - Climate Resilient Community Reduce Plastic Pollution 2 - Zero Waste Neighborhoods Improved Air Quality 3 - Climate Resilient Community Make real progress on the road to Zero Waste 2 - Zero Waste Neighborhoods Develop a Circular Economy Plan 10 - Zero Waste Economy Improve tree policies 3 - Climate Resilient Community Implementation of 15-minute community concept 5 - Live, Work and Play Nearby Fort Collins Climate Action History And Leadership The Fort Collins community and its elected leaders have long put a high priority on being a regional, national, and global leader in fighting climate change. From 1999, when the City's fi rst Climate Action Plan was adopted – to 2015, when our climate commitment was reconfirmed, and goals updated – through new urgency expressed by Council's adoption of resolutions in 2018, committing to 100% renewable electricity (Attachment 2) and in 2019, declaring a climate emergency (Attachment 3). Platte River has also expressed commitment with the adoption of the Resource Diversification Policy and 100% non-carbon electricity goal for 2030. With the adoption of the Our Climate Future plan in 2021, centering equity and resilience alongsid e mitigation – the Fort Collins community continues to be on the leading edge of climate work. Our Climate Future (OCF) implementation intensifies our community efforts to achieve these three primary environmental goals: • Reduce 2030 greenhouse gas emissions by 80% below 2005 baseline levels; • Provide 100% renewable electricity by 2030 with grid and local sources; and • Achieve zero waste, or 100% landfill diversion, by 2030. The commitment of the community has, in practice, resulted in ongoing programs, s ervices and initiatives by City departments and partner agencies. The concerted effort to mitigate climate change has produced results. The community achieved its 2020 emissions reductions goal, with a 24.5% reduction compared to 2005 levels. (Attachment 4) B.1 Packet Pg. 4 April 12, 2022 Page 3 The positive results to date in carbon mitigation have come primarily through changes in electricity resources, lower energy use, reduced waste generation, and changes at landfills. These results can be traced to dedicated resources and defined pathways. For example, Platte River Power Authority has added significant wind and solar resources to the electricity portfolio to reach an over -50% non-fossil fuel electricity mix, which was approximately 80% fossil based in 2005. (Attachment 5) Carbon Mitigation Drivers of Change Figure 1 illustrates general categories of factors that have driven overall changes in the Fort Collins community carbon inventory. While the net impact is noted above as a 24.5% reduction from 2005 levels (exceeding the 20% target), some factors have driven up our emissions while others drive it downwards. Figure 1: Fort Collins Community Carbon Inventory, Drivers of Change (2005 – 2020) Notes: • Growth accounts for increased population • Weather accounts for specific yearly comparisons • External includes any changes to vehicle miles travelled, fleet average miles per gallon, changes in the distribution of vehicle type/distribution, regional electric purchases, and some landfill factors • Influenced includes Platte River resource mix and renewables, and some landfill factors • Direct includes efficiency and conservation program savings, local renewables, and local mobility Why is Fort Collins Invested in the Work of Climate Action? The evidence from the scientific community has never been clearer on the importance of taking meaningful action this decade. A recent U.N. Intergovernmental Panel on Climate Change report found that humanity has a "brief and rapidly closing window" to avoid a hotter, deadlier future. B.1 Packet Pg. 5 April 12, 2022 Page 4 Regionally, we are seeing increasing frequency of wildfires, extreme heat, and droughts across the Rocky Mountain West. These are firsthand experiences in our part of the globe that remind us, season by season and year by year, that a changing climate is not just a threat to fut ure generations; it is here now and has a profound impact on planet Earth and on the people, the plants, and the animals who inhabit it. The Fort Collins community has also repeatedly reaffirmed its commitment to resource and accelerate towards a sustainable future, including in the 2021 statistically valid Community Survey where 47% of respondents shared that the City is rising to meet its obligations for the environment and 48% said the City should be doing more. (37% to 58% in the opt-in web survey.) Our Climate Future Implementation – Path to 2030 To reach and exceed the 2020 greenhouse gas (GHG) emissions goal, the focus was primarily on accelerating and scaling up ongoing efforts. To achieve the 2030 goals for GHG reductions, renewable electricity, and zero waste, fundamental transformation must be undertaken to engage new partners and resources. In short, we cannot achieve these goals with only the City as the primary driver of initiatives. The Critical Path articulated in OCF recognized that three initiatives were essential to making real progress on the three primary environmental goals (Figure 2): • 100% Renewable Electricity – 2021 preliminary results show that, for the first time, Fort Collins received greater than 50% of electricity from renewable sources. New solar projects that are in planning or proposal stages will further drive this number higher in the next few years. Plans are in place to exit existing coal plants between 2026 and 2030. New local solar installations continue to increase year over year with a total capacity expected to exceed 30 megawatts by the end of this year. In addition, plans are moving forward to enter regional electricity markets, a key enabler of continuing to grow the renewable resource portfolio. • Expansion of the Local and Regional Transit Network – The City is planning for the expansion of new bus rapid transit routes, adding electric buses to the system, and recognizes the role of active mobility as a p art of how the community gets around. Council is also discussing transit funding needs on April 12 as a precursor to exploring potential new revenue options that may provide sustainable long -term transit funding. • Community-wide Organic Waste Diversion - Community-scale solid waste infrastructure (e.g., regional compost facility) is needed to make real progress on Fort Collins’ zero waste goal. Fort Collins staff and elected officials have partnered with Larimer County and other municipalities since 2015 to plan for a Regional Wasteshed that can support a circular economy for waste materials. Council is also discussing climate funding needs on April 12 as a precursor to exploring potential new revenue options that may provide sustainable long-term funding. Figure 2: Our Climate Future Critical Path (2021) B.1 Packet Pg. 6 April 12, 2022 Page 5 In support of OCF outcomes, including initiatives focused on the critical path to the 2030 and Next Moves pathways, there are active projects, programs, and partnerships across the City organization, th roughout the community, and at regional, state, and national levels City Efforts As highlighted earlier in Table 1, a great many of Council and community priorities intersect with and are supported by Our Climate Future as a driver of: • Transit and active mobility • Waste reduction, recycling and organics diversion • Utilities efforts o Efficiency, solar and batteries o Grid flexibility o Water conservation/resources and stormwater • Housing, Natural Areas, Parks • Municipal sustainability and adaptation • Exploring long-term funding solutions Partner and Regional Efforts • Platte River wind and solar, electricity market planning • Zero waste implementation with Larimer County and Regional Wasteshed • Larimer County Climate Smart plan • CSU campus system solar implementation • Reduction of Industrial Process and Product Use (IPPU) emissions State and Federal Efforts • City participation and leadership with Colorado Communities for Climate Action (CC4CA) • Colorado climate legislation, Utility Clean Energy Plans, Electric Vehicle infrastructure • Federal infrastructure plan funding opportunities Together, these efforts will drive Fort Collins further on the pathways towards the 2030 goals. Looking just at mitigation efforts, forecasts to 2030 of current and pending efforts illustrat e the two carbon inventory sectors covered below under “Next Pathways” where, after electricity, it will be essential to make new substantive acceleration in results. Both fall into the broad category of electrification, in addition to source reduction. (F igure 3) Next Pathways – Natural Gas and Petroleum • Natural gas - Natural gas use reductions will require the community to find new ways to improve efficiency and conservation and also start the long-term initiative to electrify building space and water heating. Examples of such initiatives include: o Requirements-based initiatives such as continued building code advancements, building performance standards, rental licensing, and real estate listing requirements. o Initiatives to electrify building space and water heating will require substantial investment that is not likely to occur rapidly at scale without significant incentives. • Petroleum - Ground travel emissions reductions will require the community to continue efforts to reduce driving gasoline and diesel vehicles through transit, land use, and transition of the community fleet of vehicles to electric. Examples of such initiatives include: o Continued support for changes in land use and implementation of the Transit Master Plan. o The transition of a significant portion of the community to electric vehicles will require related efforts to expand charging infrastructure. B.1 Packet Pg. 7 April 12, 2022 Page 6 o Reduction of ground travel emissions can also be achieved through expansion of the city’s bicycle and pedestrian network, in conjunction with increased and expanded transit services. Infrastructure improvements for these purposes can also improve livability, community health, and equity. Figure 3: Our Climate Future Carbon Inventory Forecast with 95% Renewable Electricity (2022) Nexus of Mitigation, Resilience, and Equity Climate scientists have clearly described the mathematics behind their observations and projections for why acting on climate now is so crucial. And numbers matter whether you’re measuring CO2 equivalent parts per million, or dollars and cents invested in solutions. What makes Our Climate Future fundamentally different is the acknowledgement that meaningful, lasting, equitable and just climate action is not simply a math problem. The historical and systemic issues that have given rise to climate change will require systemic responses for our whole community to embrace and benefit from these initiatives. Historical analysis of investment needs for climate efforts have focused almost exclusively on mitigation (the reduction of GHG emissions that are included in the annual community carbon inventory). Moving forward, Fort Collins is evolving to continue emphasizing mitigation and expand this focus to include resilience (aka climate adaptation) and equity (aka environmental justice), which are more difficult to quantify yet equally as important for the long-term success of efforts to achieve the vision for a carbon neutral Fort Collins that benefits all. OCF recognizes the intersection between parts of the system. To meaningfully address one element of this nexus, all must be considered. Housing is one good example of the mitigation-resilience-equity nexus between: B.1 Packet Pg. 8 April 12, 2022 Page 7 • Climate mitigation (high housing costs increase commuting and transportation emissions), • Climate equity (BIPOC and low-income communities are disproportionately impacted by rising housing costs), and • Climate resilience (stable, efficient housing positively contributes to one’s ability to respond and recover from a disruptive event). Implementing OCF Big Move #1 – Shared Leadership and Community Partnership Climate equity work and community partnerships are critical to successfully transform our systems to be carbon neutral, renewable, and zero waste. Our Climate Future centers equity in both process and ou tcome, and staff have spent much of the last several years building capacity and trust with community leaders, learning how to authentically form and nurture relationships with the community to make Our Climate Future a reality. In the fall of 2021, staff and community members worked together to develop conceptual governance models for three general types of approaches for leadership on OCF Next Moves. The descriptions below are based on the joint development of these models. • Community-led – How can the community take ownership and action, build capacity, and organize, secure funding and resources, and leverage but not depend on direct City support? • Co-led – How can jointly-led projects share leadership and influence, distribute roles, recognize strengths , and respect existing governing structures? • City-led – How can the City increase community influence on our work and increase accountability for equity? Several examples of how shared leadership is emerging in practice are as follows: • Community members are working directly with staff on the OCF Strategy Team as community consultants. • Two projects where a community partner organization has been selected to lead, with compensation, to co - lead reimagining of past efforts. The outcomes will be to bring forward a new model for a sustainable business program (formerly ClimateWise) and an OCF equity/advisory committee (formerly the CAP Community Advisory Committee). Council Priority - Explore Climate Emergency Messaging And Action City-led OCF efforts for the remainder of 2022 are focused on ongoing implementation of Next Moves, financial planning for the next two years, and advancing the Council Priority to Explore climate emergency messaging and action. For the Council Priority, staff has understood this as direction to: • Conduct a literature/peer city review and engage the community on the potential impacts and benefits of consistently using climate emergency messaging. • Conduct a review of OCF goals, with respect to current climate science and best practi ces, and to engage the community to provide recommendations to Council. This review is expected to include consideration of interim targets, milestone years, sector-based targets, and integration of equity and resilience commitments. Staff intends to conduct peer research, with the support of the Urban Sustainability Directors Network (USDN), and seek targeted input from key community groups, advisory boards, and community consultants to inform recommendations for Council later this year. This will includ e use of a variety of engagement strategies and tactics to validate representation and ensure historically underrepresented voices are articulated. B.1 Packet Pg. 9 April 12, 2022 Page 8 Next Steps • Continue to develop partnerships and shared leadership connections to support strategy and imp lementation of OCF. • Pursue engagement and research on OCF goals and climate messaging, based on Councilmember discussion. • Return to Council Q3/Q4 to review community input on climate goals and messaging and preview the ‘23 -‘24 OCF Next Moves Plan. ATTACHMENTS 1. Our Climate Future Plan and Big Moves Summary (PDF) 2. Resolution 2018-094 (PDF) 3. Resolution 2019-091 (PDF) 4. 2020 Community Carbon Inventory (PDF) 5. 2020 Energy Policy Annual Update (PDF) 6. Powerpoint Presentation (PDF) B.1 Packet Pg. 10 WELCOME TO FORT COLLINS’ OUR CLIMATE FUTURE PLAN This Plan is our community guide to creating the carbon neutral, zero waste and 100% renewable electricity future we desire while improving our community equity and resilience. Our Climate Future articulates an unwavering commitment to mitigating and adapting to climate change with a comprehensive approach that puts people first. Our Climate Future implementation intensifies our efforts towards these primary environmental goals: •Reduce 2030 greenhouse gas emissions by 80% below 2005 baseline levels; •Provide 100% renewable electricity by 2030 with grid and local sources and •Achieve zero waste, or 100% landfill diversion, by 2030. PUTTING PEOPLE FIRST Our Climate Future recognizes that if everyone is to benefit from these efforts, we must intentionally put people at the center of the work to harness the skills and passion of the residents and businesses who call Fort Collins home. When we redesign our efforts to put people, their respective communities and community-defined priorities at the center of our approach, with technical solutions serving and uplifting those priorities, climate action becomes a catalyst for addressing many of our challenges, from affordable housing, to a healthy economy, to convenient ways to get around. Our Climate Future embodies a systems-approach for solutions which address climate, energy and waste goals while positively impacting the daily lives of residents, business operations and supporting community-defined sustainability priorities. Together, Big and Next Moves increase community capacity to: •Draw down greenhouse gas emissions, waste and energy use, while increasing renewable electricity, carbon sequestration and waste prevention; •Co-create and share community leadership to develop partnerships for implementation; •Adapt to a changing climate to improve community resilience; •Plan for investment in a portfolio of strategies which provide net benefits; •Ensure all parts of the community are included and see themselves in the solutions proposed; and •Track the goals to measure success and progress toward achieving sustainability and resilience. BIG AND NEXT MOVES Big Moves is the Our Climate Future way of describing the transformational outcomes which connect our specific goals for climate, energy and waste with the community’s definition of a sustainable Fort Collins. Next Moves are the specific strategies and tactics that lead to transformational outcomes of the Big Moves. Each Big Move has an associated set of Next Moves. The Next Moves are evaluated for their impact on goals, benefits and costs, potential results for improving equity and resilience. OCF PLAN AND BIG MOVES ATTACHMENT 1 B.1.1 Packet Pg. 11 Attachment: Our Climate Future Plan and Big Moves Summary (11428 : Our Climate Future) THIRTEEN BIG MOVES FOR OUR CLIMATE FUTURE11 BETTER TOGETHER 1 - Shared Leadership and Community Partnership: Centered in equity and leading with race, all parts of our community lead, implement and benefit from Our Climate Future. 2 - Zero Waste Neighborhoods: We can all share and reuse so we don’t have to buy things we won’t regularly use and are able to recycle or compost the rest. 3 - Climate Resilient Community: People, buildings, watersheds and ecosystems are prepared for the threats of climate change. LIVE BETTER 4 - Convenient Transportation Choices: It is safe, easy, fast and affordable to get around without a car. 5 - Live, Work and Play Nearby: No matter where we live, we all can meet our basic daily needs without driving across town. 6 - Efficient, Emissions Free Buildings: Everyone lives and works in healthy energy and water efficient buildings which transition to become emissions free. 7 - Healthy Affordable Housing: Everyone has healthy, stable housing they can afford. 8 - Local, Affordable and Healthy Food: Everyone has access to healthy and affordable food, sourced or rescued from local and regional producers. RESOURCE BETTER 9 - Healthy Local Economy and Jobs: The community supports a healthy innovative local economy with new opportunities for all people and businesses to thrive. 10 - Zero Waste Economy: Business, industry, institutions, and government collaborate to recirculate resources and eliminate waste. BREATHE BETTER 11 - Healthy Natural Spaces: We all are stewards of healthy natural spaces and honor the deep and historical human connection to this land. 12 - 100% Renewable Electricity: Everyone in the community receives affordable and reliable 100% renewable electricity, including from local sources. 13 - Electric Cars and Fleets: Residents can afford and use electric cars, including shared electric cars, and conventional fleets are converted to electric. 1 The Big Move numbering is for easy referencing; the order does not imply priorities of any kind. OUR CLIMATE FUTURE AND YOU This plan is about you and is an invitation to lead. Because this plan is about all of our futures, it will take all parts of our community to ensure the future is equitable, climate resilient, carbon neutral, renewable, and zero waste. Whether you are a resident, business owner, community institution, or visitor, consider this an invitation to get involved and find your place of action and leadership in Our Climate Future. See the Our Climate Future Action Guide for a starting point of ideas to get started. Auxiliary aids and services are available for persons with disabilities. V/TDD: 711 21-23703 B.1.1 Packet Pg. 12 Attachment: Our Climate Future Plan and Big Moves Summary (11428 : Our Climate Future) ATTACHMENT 2 B.1.2 Packet Pg. 13 Attachment: Resolution 2018-094 (11428 : Our Climate Future) B.1.2 Packet Pg. 14 Attachment: Resolution 2018-094 (11428 : Our Climate Future) B.1.2 Packet Pg. 15 Attachment: Resolution 2018-094 (11428 : Our Climate Future) B.1.2 Packet Pg. 16 Attachment: Resolution 2018-094 (11428 : Our Climate Future) ATTACHMENT 3B.1.3Packet Pg. 17Attachment: Resolution 2019-091 (11428 : Our Climate Future) B.1.3Packet Pg. 18Attachment: Resolution 2019-091 (11428 : Our Climate Future) B.1.3Packet Pg. 19Attachment: Resolution 2019-091 (11428 : Our Climate Future) Fort Collins has some of the most aspirational climate goals in the country: 20% reduction below 2005 levels by 2020, 80% reduction by 2030, and carbon neutral by 2050. In the first interim target year, 2020, the Fort Collins community was down 24% compared to 2005, surpassing the goal. Climate Action Plan fcgov.com/climateaction $150 17 MTCO2e 2005 10 MTCO 2e 2020 How do you fit in?Progress Per Capita Our actions add up. Changes by residents, businesses, and industry have reduced per capita emissions 41% from 2005 levels. This is the same as saving 20,000 miles of driving. What 24% means for household costs: 2020 Community Carbon Inventory MTCO2e = metric tons of carbon dioxide equivalent (common units we use for greenhouse gas emissions). 14 MTCO2e 2015 • $97/year savings from electricity • $66/year savings from petroleum An average household saved about $150 due to climate action eorts. DOWN41% 20% REDUCTION 80% REDUCTION NEUTRALBY 2050 CARBON 2005 2020 2030 2050 Where are we going?Climate Goals 2020 INVENTORY 24% BELOW 2005 ATTACHMENT 4 B.1.4 Packet Pg. 20 Attachment: 2020 Community Carbon Inventory (11428 : Our Climate Future) Let's dive into the details What part did COVID-19 play? COVID-19 aected nearly every part of our lives in 2020, including greenhouse gas emissions. What’s driving reductions? Between 2019 and 2020, a few major factors contributed to the community’s progress: Our Climate Future Our Climate Future, adopted in 2021, makes an unwavering commitment to mitigating and adapting to climate change with a comprehensive approach that puts people first. Greenhouse gas emissions are one way to understand our progress on climate action, and we are exploring additional measures that also tell the story of our community’s progress on climate. Vehicle miles traveled, or how much we used our cars in 2020, decreased 14% from what was originally predicted for 2020. This accounted for about 3% of progress. With people spending a lot more time at home, the community experienced a shift of energy use from businesses to homes. • • However, even without the impacts of COVID-19, the community would still have met the 2020 goal. • • • • Roundhouse Wind Energy Project – 10% Reductions in vehicle use due to COVID-19 – 3% Reductions in Industrial Process and Product Use emissions – 2% Weather – 2% Auxiliary aids and services are available for persons with disabilities. Esta informacin puede ser traducida, sin costo para usted.21-23801 Get involved and learn more at fcgov.com/cap B.1.4 Packet Pg. 21 Attachment: 2020 Community Carbon Inventory (11428 : Our Climate Future) Learn more ways to conserve at fcgov.com/conserve 26%PETROLEUMHow do you fit in? COMMUNITY ENERGY USE Per capita reductions from 2005 Building square footage increased by 21%, but buildings are 11% MORE EFFICIENT.NATURAL GASSINCE 2005 29%POPULATION INCREASED4%ENERGY USE INCREASED ONLY Thanks to residents and businesses improving eciency and practicing conservation.ELECTRICITY19%Electricity use per capita is the lowest it’s been since 1986. Energy Policy Report We can lead in ENERGY EFFICIENCY and RENEWABLES with HIGH RELIABILITY, AFFORDABLE BILLS and AWARD-WINNING PROGRAMS. The Energy Policy reflects Fort Collins’ values of reliability, aordability, safety, greenhouse gas emissions reduction, pollution prevention, environmental stewardship and energy independence. It is aligned with the Climate Action Plan (CAP) goals of 20% carbon reduction below 2005 levels by 2020, 80% by 2030 and carbon neutral by 2050. Read the full annual report at fcgov.com/what-we-do. 2020 Annual Update OUR IMPACT DOWN Despite a growing population, eciency programs have helped limit the increase in electricity use. It would be 15% higher without Utilities’ programs. Saved Electricity from Eciency Utilities Actual Community Electricity Use Residential Eciency Savings: 63M kWh Business Eciency Savings: 168M kWh 2015 2010 2020 2005 Fort Collins is designated a Smart Energy Provider by the American Public Power Association. 15% ATTACHMENT 5 B.1.5 Packet Pg. 22 Attachment: 2020 Energy Policy Annual Update (11428 : Our Climate Future) Peak Usage With Peak Partners, customers reduced demand by 1,800 kW during peak times. The average residential customer uses about 620 kWh per month (or 7,400 kWh per year). Auxiliary aids and services are available for persons with disabilities. V/TDD 711 Esta informacin puede ser traducida, sin costo para usted. 970-212-2900 21-23230 X 100 Customer electricity savings from programs totaled 43M kWh (2.8% of the community's annual use), equivalent to taking 5,600 homes' electric use o the grid. Energy Savings Reliability With 99.9981% reliability, most residents did not experience an outage. Community Economics Customer projects generated more than $44M in local economic benefits through reduced utility bills, direct rebates and leveraged investments, and also supported 240+ JOBS. Did you Know? It is cheaper to save electricity with eciency (3.4 cents) than it is to buy more electricity (6.2 cents). Local Renewables Installed 454 new renewable energy systems, adding 3,200+ kW. 1.4% of electricity came from local renewables. LOOKING FORWARD Our Climate Future With people at the center of our work, we'll discover what's possible as we strive toward our energy and climate goals. You are part of the solution. Get engaged at fcgov.com/OurClimateFuture. Time-of-Day Rates 65% of residential customers showed a decrease in annual electric bills with TOD pricing. The average monthly bill was $1.43 lower. SUMMER NON-SUMMER Electricity Supply 76% Fossil Fuels 2% Wind 0% Solar 22% Hydro 2005 2020 2030 GOAL 100% renewable 54% Fossil Fuels 23% Wind 4% Solar 19% Hydro DOWN 38%from 2005 Electricity Carbon Emissions B.1.5 Packet Pg. 23 Attachment: 2020 Energy Policy Annual Update (11428 : Our Climate Future) Our Climate Future 1 Honoré Depew, Climate Program Manager John Phelan, Energy Services Manager and Policy Advisor ATTACHMENT 6 B.1.6 Packet Pg. 24 Attachment: Powerpoint Presentation (11428 : Our Climate Future) 2Council feedback 1.What feedback do Councilmembers have on the implementation of Our Climate Future? 2.What feedback do Councilmembers have on how implementation supports Council’s Priority to Explore climate messaging and action? B.1.6 Packet Pg. 25 Attachment: Powerpoint Presentation (11428 : Our Climate Future) 3Our Climate Future Alignment Strategic Objective 4.1: Intensify efforts to meet 2030 climate, energy and 100% renewable electricity goals that are centered in equity and improve community resilience Council Priorities: •Explore climate emergency messaging and action •Advance transit initiatives •Advance regionalism •Accelerate composting •Districted system for waste •Protect and enhance instream river flows •Reduce plastic pollution •Improved air quality •Make real progress on the Road to Zero Waste •Develop a circular economy plan •Improve tree policies •15-minute community B.1.6 Packet Pg. 26 Attachment: Powerpoint Presentation (11428 : Our Climate Future) 4Ambitious Goals •Reduce 2030 greenhouse gas emissions by 80% below 2005 baseline levels •Provide 100% renewable electricity by 2030 with grid and local sources •Achieve zero waste, or 100% landfill diversion, by 2030 B.1.6 Packet Pg. 27 Attachment: Powerpoint Presentation (11428 : Our Climate Future) 5 Climate change impacts are here now, both locally and globally B.1.6 Packet Pg. 28 Attachment: Powerpoint Presentation (11428 : Our Climate Future) Our Climate Future •Mitigating and adapting to climate change with a comprehensive approach that puts people first •If everyone is to benefit from these efforts, we must intentionally put people at the center of the work OCF Adopted March 2021 ourcity.fcgov.com/ourclimatefuture 6 B.1.6 Packet Pg. 29 Attachment: Powerpoint Presentation (11428 : Our Climate Future) OCF Big Moves 7 B.1.6 Packet Pg. 30 Attachment: Powerpoint Presentation (11428 : Our Climate Future) OCF Implementation •Critical Path and Next Moves in Action •Shared Leadership & Community Partnership •Co-led and City-led Models in Action •Action at all levels B.1.6 Packet Pg. 31 Attachment: Powerpoint Presentation (11428 : Our Climate Future) 9OCF Critical Path in Action 2030 Critical Path ·100% renewable electricity ·Expansion of the local and regional transit network ·Community-wide organic waste diversion Next Pathw ays -Electrification ·Reduced petroleum use (vehicles) ·Reduced natural gas use (buildings) RE > 50% (2021) Per capita Down 19% (2020) Emissions Down 38% (2020) Electricity Results B.1.6 Packet Pg. 32 Attachment: Powerpoint Presentation (11428 : Our Climate Future) 10OCF Next Moves in Action City Efforts •Tr ansit and Active Mobility •Utilities •Efficiency, solar and batteries •Grid flexibility •Wa ter conservation/resources and stormwater •Housing, Natural Areas, Parks •Municipal Sustainability and Adaptation Partner and Collaborative Efforts •Platte River wind and solar, electricity market planning •Larimer County –Regional Wasteshed and Climate Smart •CSU campus system solar implementation •CC4CA statewide policy advocacy B.1.6 Packet Pg. 33 Attachment: Powerpoint Presentation (11428 : Our Climate Future) 11OCF Big Move #1 –Shared Leadership and Community Partnership How can the City… •increase community influence on our work •increase accountability on equity How can jointly-led projects… •share leadership and influence •distribute roles and recognize strengths •respect existing governing structures How can the community… •take ownership and action •build capacity and organize •secure funding and resources •leverage but not depend on City support Italics = as desired by community City-ledCo-ledCommunity-led B.1.6 Packet Pg. 34 Attachment: Powerpoint Presentation (11428 : Our Climate Future) 12OCF Big Move #1 in Action –Co-Led Next Moves Italics = as desired by community •Community Consultants working directly with staff on OCF Strategy Te am •Community Partners co-leading: •Reimagining a sustainable business program (formerly ClimateW ise) •Reimagining advisory / equity committee (formerly CAP Community Advisory Committee) •OCF Catalyzing Action Event, March 31 B.1.6 Packet Pg. 35 Attachment: Powerpoint Presentation (11428 : Our Climate Future) 13OCF Big Move #1 in Action –City Led Next Moves Italics = as desired by community •Implementation of critical path and City- led Next Moves with partners •Review of City’s climate goals •Ensure alignment with latest science •Consider interim goals •Embed equity and resilience •Review of community feedback for climate messaging •Develop ‘23-’24 Budget and OCF Next Moves Plan •Continue regional, state and federal action Council Priority and Climate Emergency Resolution in Action B.1.6 Packet Pg. 36 Attachment: Powerpoint Presentation (11428 : Our Climate Future) 14Next Steps •Continue to develop partnerships and shared leadership connections to support strategy and implementation of OCF •Pursue engagement and research on OCF goals and climate messaging, based on Councilmember discussion •Return to Council Q3/Q4 to review community input on climate goals and messaging and preview the ‘23-‘24 OCF Next Moves Plan B.1.6 Packet Pg. 37 Attachment: Powerpoint Presentation (11428 : Our Climate Future) 15Council feedback •What feedback do Councilmembers have on the implementation of Our Climate Future? •Critical path and Next Moves implementation? •Shared leadership approach? •What feedback do Councilmembers have on how implementation supports Council’s Priority to Explore climate messaging and action? •New or revised goals? •Climate emergency messaging? B.1.6 Packet Pg. 38 Attachment: Powerpoint Presentation (11428 : Our Climate Future) 16 ADDITIONAL SLIDES B.1.6 Packet Pg. 39 Attachment: Powerpoint Presentation (11428 : Our Climate Future) 17Path to 2030 2030 Critical Path ·100% renewable electricity ·Expansion of the local and regional transit network ·Community-wide organic waste diversion Next Pathw ays - Electrification ·Reduced petroleum use (vehicles) ·Reduced natural gas use (buildings) B.1.6 Packet Pg. 40 Attachment: Powerpoint Presentation (11428 : Our Climate Future) Carbon Inventory Drivers of Change 18 B.1.6 Packet Pg. 41 Attachment: Powerpoint Presentation (11428 : Our Climate Future) 192030 Projection –Community Carbon Inventory •Key Pathways •Platte River committed to 100% renewable electricity by 2030 •Reduced petroleum use (vehicles) •Diversion of organic waste (universal composting) •Reduced natural gas use (buildings) Natural gas Petroleum Organic waste B.1.6 Packet Pg. 42 Attachment: Powerpoint Presentation (11428 : Our Climate Future) DATE: STAFF: April 12, 2022 Jennifer Poznanovic, Project and Revenue Manager WORK SESSION ITEM City Council SUBJECT FOR DISCUSSION Sustainable Funding Plan. EXECUTIVE SUMMARY The purpose of this work session is to discuss specific identified funding needs as a first step in determining potential revenue sources. Four specific funding needs have been identified through masterplans and Council and commun ity priorities. These include parks and recreation, transit, housing and climate plans. Identified annual shortfalls range from six to ten million per need. GENERAL DIRECTION SOUGHT AND SPECIFIC QUESTIONS TO BE ANSWERED 1. What questions does Council have on the identified funding needs? 2. What questions does Council have on process? 3. Does Council agree with proposed next steps? BACKGROUND / DISCUSSION Over the past 2-3 years, masterplan developments and updates have identified clear funding need s in the areas of parks and recreation, transit, and housing. Along with these needs and knowing the criticality of the City climate action goals, Council Finance Committee has asked for climate revenue needs to be included in revenue conversations as well. Annual shortfalls range from six to twelve million dollars per area. The Parks and Recreation area and the Transit area have long -term plans that highlight specific operational goals and a focus on asset management. New parks have dedicated funding through capital expansion fees to be designed and built, however the maintenance and future updates are currently reliant on general fund dollars which are unable to meet the needs. This has resulted in much deferred maintenance and a lack of infrastructure updates to keep pace with community desires and trends. Currently, 25 percent of transit dollars come from the general fund. While transit is an area that is by nature subsidized, continuing this model locally creates limitations on transit and a constrai nt to general fund dollars. Affordable and attainable housing is a Council and a community priority. The City has a goal of reaching 10% housing stock as affordable by 2040 (currently at 5%). It is recognized that working towards, or achieving, this goal will require multiple funding strategies both local, private, non-profit, and federal and that the City piece of this funding is limited without additional or dedicated revenue. The Our Climate Future comprehensive plan and identified “Big Moves” have ou tlined tactics to help achieve the 2030 climate action goals. Implementing and accelerating these actions would require approximately six million dollars annually. B.2 Packet Pg. 43 April 12, 2022 Page 2 Staff is working to develop workplan and process to discuss and address revenue needs. Thi s plan will include on-going Council Finance meetings, work sessions with the full Council, community engagement, and ultimate implementation. The following bullets highlight workplan considerations: • Clearly define and articulate revenue needs and leve l of service considerations • Thoroughly research funding options including impacts and the context of existing and potential new tax measures (local and regionally) • Recognize and work within the desire to keep overall tax burden as low as possible • Consideration of existing dedicated tax renewals and associated election timelines PARKS AND RECREATION The Parks and Recreation Master Plan was adopted on January 19, 2021, and incorporated a year of extensive staff, community, and stakeholder participation. The funding section of the plan features a primary goal to enhance the financial sustainability of Parks and Recreation. While existing operations and maintenance budgets are close to what is needed, there are no dedicated funding sources for capital in vestment. The funding gap identified by the consultant is captured in the table below: Existing Funding ($M) Operations & Maintenance Infrastructure Replacement Parks (Majority General Fund) $12.3 $0.5 Recreation (Program Revenue & General Fund) $11.3 Total $23.6 $0.5 Needed Funding ($M) Operations & Maintenance Infrastructure Replacement Parks $13.3 $8.7 Mini Parks $0.2 Plazas $0.1 Urban Parks Neighborhood Parks $2.5 Schoolside Parks $1.5 Community Parks $3.9 Special Use Parks $0.5 Recreation $11.3 $2.3 Planting Refresh $0.6 Total $24.6 $11.6 Funding Gap ($M) Operations & Maintenance Infrastructure Replacement Parks $1.0 $8.2 Recreation $0.0 $2.3 Planting Refresh $0.6 Total $1.0 $11.1 • Operations and Maintenance (O&M) - the daily tasks needed to keep parks and recreation facilities running and minor repairs to capital assets to keep them in a good state of repair. This includes regular care like water management/repair, turf care, trash and litter, playground inspections and minor upkeep. Currently, funding for these types of activities is close to the full need, with just $1M of annual gap identified in the recent master plan. B.2 Packet Pg. 44 April 12, 2022 Page 3 o O&M for parks is currently funded by the general fund as part of ongoing park maintena nce offers submitted through the Budgeting for Outcomes process . o O&M for recreation is funded through program revenues and some general fund contributions. Fort Collins recreation department has a higher than typical cost recovery rate. • Infrastructure Replacement - includes critical maintenance projects or repair of existing assets -when regular maintenance can no longer keep them in a good state of repair-safety and ADA (Americans with Disabilities Act) improvements, and existing debt service obligations. Many of these types of improvements typically require one-time funding and are not likely to increase annual operations and maintenance costs. In many cases, these types of projects may reduce annual operations and maintenance costs. It may also inclu de strategic changes to existing parks or recreation facilities to address the unmet needs of the community, including adding features such as play fields, shade structures, adult fitness equipment, covered picnic shelters, and trail loops to extend recreation opportunities. These types of improvements typically require one- time funding and may trigger slight increases in annual operations and maintenance costs, depending on the nature of the improvements. Funding for these activities has a significant gap. The Parks and Recreation master plan identified primary goals of providing equitable access to parks and recreational experiences. By investing in ongoing infrastructure replacements, community members will experience a more consistent level of service across existing amenities, while the City minimizes costs associated with the need for a major refresh. B.2 Packet Pg. 45 April 12, 2022 Page 4 TRANSIT Transit Budget - Current State Amount: The 2019 operational budget for Transit was approx. $17.5M. Operational Budget Funding Sources Est. Amount Federal ~ $4.3M State ~ $200K CSU Contract ~ $2.1M Local Funding ~ $10.9M Total $17.5M • Local match funding sources include fares/fees, investment earnings, other intergovernmental reimbursements and other smaller miscellaneous revenue sources. • Estimates for future operation needs assume a 25% federal match. Capital Projects • Amounts for capital projects vary widely year over year. • The minimum federal match is 80/20 (grant/local). • Recent federal communication has indicated that future successful grant applicants will have higher local match amounts. • Estimates for future capital needs assume a 50% federal match. • Total anticipated expenditure for the Transit Master Plan (TMP) is $270M - $308M. At 50% grant match, this results in an additional local match need of $135M - $154M or $7.7M annually over twenty years. Estimation of Funding Need - What is the gap? Staff estimates the gap between current funding levels and the annual funding need to average $7.7M annually in capital project needs over the next twenty years. At the conclusion of twenty years, an additional annual need of $9.8M for operations and maintenance is anticipated. Assuming an average need of approximately $9.8M over the next twenty years, allows for the anticipated total capital expenditure of approximately $154M in local funds and a corresponding incremental increase to the additional operational need of $9.8M annually. Type Assumed federal support Timeline Est. local new funding need Type Capital 50% Over 20 years $7.7 million annually One-time Investment Operational 25% Slow build to 20-year total $9.8 million annually in 20 years Ongoing investment What would the revenue be used for? Capital Projects & Fleet Improvements to construct 3-4 Bus Rapid Transit (BRT) routes, build electrification charging infrastructure, purchase electric busses, and build mobility hubs. Operations & Maintenance Expansion to provide double the annual service hours, operate high frequency routes, and operate new routes such as the 3-4 additional BRT routes. B.2 Packet Pg. 46 April 12, 2022 Page 5 HOUSING Affordable Housing Funding - Current State Source Est. Amount Affordable Housing Fund (AHF) $1,000,000 HOME (Federal) $725,000 CDBG (Federal) $750,000 Affordable Housing Capital Fund (AHCF/CCIP) $500,000 Total $2,975,000 Amount: $1.5-3 million in funding annually; recommendations from Housing and Human Services Funding Board with approval by Council. 2022 Revenue sources and amounts: • Funding history for AHF, CDBG and HOME: <https://www.fcgov.com/socialsustainability/funding> Funding guidelines: • Leverage funding alongside resources from tax credits, private investment, etc. at 1:10 or better. • Focus direct investment on the lowest income levels, higher priority to projects serving lower AMI (for example, permanent supportive housing for residents making 0-30% AMI) Estimation of Funding Need - What is the gap? The overall community funding need for affordable housing is far larger than the City could satisfy on its own; however, the City’s contribution plays a critical role. One unit of housing costs about $330,000 to build, and one typical affordable housing project of 80-100 units can cost $25-30 million or more. To build 282 units per year (the City’s production target), the total cost is over $93 million each year. Historically, the City’s role has been to fill funding gaps and leverage other funding sources to help projects “cross the finish line.” The City’s current ability to support projects is limited by the small amount of funding allocate d to affordable housing. In addition, the City currently has very small dedicated funding source (CCIP allocation, expiring in 2025) for other important housing initiatives like the Land Bank and fee credit programs. From 2015-2020, the average City subsidy for affordable housing projects was $39,000 per unit. This is a helpful metric for estimating the gap between current funding levels and funding need, assuming that $39,000 in City investment will continue to yield one unit of affordable housing. Using this assumption, staff estimates the City funding gap to be $8-9.5 million annually. Accounting for the expiration of the CCIP tax in 2025 ($500k) increases this gap to $8.5-10 million annually in additional revenue needed, or $10-11.5 million total annual funding. Current City funding levels (low/high) Expected affordable production with current City funding (current funding/$39,000) Gap (282 units per year - expected production) Est. funding need from City (gap x $39,000) $1.5 million 38 units 244 $9.5 million $3 million 77 units 205 $8 million The City is also about 700 units behind in affordable housing production from 2015 -2020. This calculates to approximately $27 million in deferred funding . What would the revenue be used for? • Expanding the current Competitive Process to better support projects seeking to: acquire land, develop housing, preserve existing housing, and support residents. B.2 Packet Pg. 47 April 12, 2022 Page 6 • Expanding or initiating additional City-led efforts such as: acquiring land bank properties, extending affordability restrictions, expanding eligibility for fee credits, developing incentive programs (energy efficiency, affordable housing preservation, etc.), and other innovative approaches (middle income, mixed income, etc.). CLIMATE The Fort Collins community and its elected leaders have long put a high priority on being a regional, national, and global leader in fighting climate change. From the City's first Climate Action Plan through to the adoption of the Our Climate Future (OCF) plan last year, Fort Collins continues to be a municipality on the leading edge of local climate action. Our Climate Future implementation intensifies our community efforts to achieve three primary environmental goals: • Reduce 2030 greenhouse gas emissions by 80% below 2005 baseline levels; • Provide 100% renewable electricity by 2030 with grid and local sources; and • Achieve zero waste, or 100% landfill diversion, by 2030. To reach and exceed the 2020 greenhouse gas (GHG) emissions goal, the focus was primarily on accel erating and scaling up ongoing efforts. To achieve the 2030 goals for GHG reductions, renewable electricity, and zero waste fundamental transformation must be undertaken to engage new partners and resources. In short, we cannot achieve these goals with only the City as the primary driver of initiatives. OCF is a framework that envisions new models of community partnership and leadership to help scale action and resources so all can benefit from the vision of a sustainable Fort Collins. Historical analysis of investment needs for climate efforts have focused primarily on mitigation, or the reduction in emissions that are included in the annual community carbon inventory. Moving forward, Fort Collins is evolving to expand this focus to include resilience (aka climate adaptation) and equity (aka environmental justice), which are more difficult to quantify yet equally as important for the long-term success of our efforts. Our Climate Future recognizes the nexus between these intersecting parts of the system. H ousing is a good example of the mitigation-resilience-equity nexus between: • Climate mitigation (high housing costs increase commuting and transportation emissions); • Climate equity (BIPOC and low-income communities are disproportionately impacted by rising housing costs); and • Climate resilience (stable, efficient housing positively contributes to one’s ability to respond and recover from a disruptive event). To meaningfully address one element of this nexus, all must be considered. Thus, the OCF path ways and funding needs described below are inclusive of all three. Defined Pathways to Fort Collins Our Climate Future Goals The commitment of the community in achieving climate goals has resulted in effective ongoing programs, services and initiatives by City departments and partner agencies reflected in a 2020 emissions reductions goal showing a 24.5% reduction compared to 2005 levels. Positive results can be traced to dedicated resources and defined pathways: • Platte River Power Authority has added significant wind and solar resources to the electricity portfolio to reach an over 50% non-fossil electricity mix and a plan showing a pathway to 90% non-carbon by 2030. • Utilities Energy Services customer facing programs are resourced at over $4.5M an nually. Another over $2M provides for solar energy purchased from local systems. In addition, Platte River’s budget provides funding for B.2 Packet Pg. 48 April 12, 2022 Page 7 efficiency programs. Together these funds put Fort Collins at the leading edge of resources for supporting customers to manage their electricity use. • The Community Recycling Ordinance, effective since June 30 2021, significantly increases waste diversion by including required recycling service for all multi-family and businesses, seasonal yard trimmings collection, and grocer composting. Continued funding and implementation of existing and emerging efforts through the City’s Budgeting For Outcomes (BFO) process are considered an essential baseline for the following discussion of potential new funding mechanisms. Undefined Pathways to Accelerate Our Climate Future Progress To identify gaps in resources and funding that will be needed to continue significant and lasting progress, staff considered the following: • Much of the incremental changes needed can be addressed through BFO. Substantial new funding will be needed to jump start strategies for medium to long-term infrastructure changes and large-scale investments. • Though climate action can be viewed separately from Housing Affordability, Parks & Recreation, and Transit, each of these areas work in concert with climate action and are reflected in the Our Climate Future plan. • Our Climate Future articulates commitments across climate resilience, equity, and emissions reduction, the nexus of which requires substantial funding and new partnerships and shared leadership. A forecast of the community climate inventory in 2030 identified natural gas use, petroleum for vehicles and organic waste as the three areas where new pathways and funding will be needed to rapid ly advance towards the 2030 milestone year. Based on these factors, staff recommends that any new climate revenue discussions focus on the following specific areas (see Table below): • Community-scale solid waste infrastructure (e.g., regional compost facility.) is needed to make real progress on the road to our zero-waste goal. Although there are strong partnerships and agreements in this area, infrastructure has been slow to break ground and new funding sources could help. • Natural gas use reductions and the long-term initiative to electrify building space and water heating is key. Annualized funding values in the table below are based upon costs from the OCF analysis (March 2021) and rough estimates for infrastructure needs and the portion covered by an incentive model. o Requirements-based initiatives such as building performance standards, rental licensing and real estate listing requirements are relatively low-cost to the City and can provide significant emission reductions. o Initiatives to electrify building space and water heating will require very significant investment. While traditional utility incentives can play a small role, there are not sufficient system benefits to pay for the necessary investment. Tens of thousands of homes will r equire upgrades to electrical panels and utility service wires. • Ground travel emissions reductions will require reduced driving of gasoline and diesel vehicles through transit, land use and transition of the community fleet of vehicles to electric. Ann ualized funding values in the table below are based upon costs from the OCF analysis (March 2021) and rough estimates for infrastructure needs and the portion covered by an incentive model. o The transition to electric vehicles will require efforts to expand charging infrastructure. B.2 Packet Pg. 49 April 12, 2022 Page 8 o Reduction of ground travel emissions can also be achieved through expansion of the city’s bicycle and pedestrian network, in conjunction with increased and expanded transit services. • Climate resilience initiatives seek to respond to the way climate change is already being experienced in Fort Collins. Adapting to these environmental changes will be an important and necessary part of climate action. Local investments can range from updated preparedness plans to building com munity resilience hubs to strengthening personal, community, and regional networks. Climate equity work and community partnerships are critical to successfully transform our systems to be carbon neutral, renewable, and zero waste. One example of an investment that could be made with new climate revenue is to subsidize residential energy efficiency programs for low-to-moderate-income residents. Our Climate Future Outcome Defined pathway Annualized long-term need MITIGATION Universal composting Larimer County+ (Regional Wasteshed) TBD Natural gas (buildings) City supported infrastructure to electrify homes $3.5M Ground travel (petroleum) City supported infrastructure for EV charging $2.6M RESILIENCE Climate resilience initiatives City and local partners TBD Example: Community Resilience Hubs City and local partners $0.5M ea. EQUITY Climate equity work and partnerships City and local partners TBD Example: residential efficiency for LMI homeowners and renters City and local partners $0.5M Proposed Next Steps The project team will meet on a regular schedule throughout 2022. Council touchpoints include regular updates at Council Finance and work sessions in 2022. A future work Session will be scheduled to discuss funding mechanisms. ATTACHMENTS 1. Park Operation & Maintenance Costs and Design Guidelines (PDF) 2. Powerpoint Presentation (PDF) B.2 Packet Pg. 50 Parks Department 413 South Bryan Avenue PO Box 580 Fort Collins, CO 80522 970.221.6660 970.221.6849 - fax fcgov.com/parks MEMORANDUM Date: March 30, 2022 To: Mayor and City Council From: Mike Calhoon, Director of Parks Kurt Friesen, Director of Park Planning and Development Thru: Kelly DiMartino, Interim City Manager Kyle Stannert, Deputy City Manager Seve Ghose, Community Services Director Re: Park Operation & Maintenance Costs and Design Guidelines The purpose of this memorandum is to prepare Council for the conversation about ongoing funding needs for various priorities, including parks and recreation funding, at the April 12 work session. Bottom Line Park operation & maintenance costs have increased over time due to several factors including price escalation/inflation, increased park usage, added amenities, and more inclusive design. Background The park system in Fort Collins is highly valued and heavily utilized as shown in results of the annual city survey- with 94% of respondents rating the quality of parks as very good or good and 97% indicating that they should be supported at the same or more effort as a budget priority. The system is comprised of over 50 parks and 45 miles of paved trails. Guided by the Parks & Recreation Plan, a distributed and interconnected system of parks has been realized throughout the city. In 2021, the Parks & Recreation Master Plan was updated with additional park classifications, design guidelines, level of service recommendations and goals, providing a road map for completion of the park system. The requests for amenities in parks are ever evolving and presents great opportunities as well as challenges. As park infrastructure has aged, there is an urgent need to address deficiencies throughout the park system. As part of this effort, it is important to realize the differences between Infrastructure Replacement and Operations & Maintenance. Operations & Maintenance Operations & Maintenance (O&M) includes year-round activities associated with keeping a site or amenity clean, safe, and functional for day-to-day use. ATTACHMENT 1 B.2.1 Packet Pg. 51 Attachment: Park Operation & Maintenance Costs and Design Guidelines (11415 : Sustainable Funding Plan) • Parks annual O&M costs are currently funded at ~$12M annually, this funding is largely sufficient to meet O&M needs, with an annual gap of $1.0M identified in the recent master plan. This gap could grow as new parks are built or if there is further price escalation/inflation. • Examples of activities associated with O&M include: o Water Management/Repair such as activating/winterizing systems, program controllers, manage water, repair pipes/heads/valves o Turf Care including mowing, prepping lines for play, dragging fields for even playability, inspect lighting, aeration, fertilization, equipment maintenance o General upkeep, such as graffiti removal, vandalism repair, litter removal, inspecting sites for damage, maintain signs, equipment maintenance, training staff o Snow removal from paved walkways and trails Park maintenance is conducted via a system of satellite maintenance shops in defined park districts. Efficiencies gained by this approach include reduced carbon footprint, faster delivery of services, staff empowerment and growth, and higher level of O&M services. O&M is currently funded through the general fund as part of ongoing park maintenance offers submitted through the Budgeting for Outcomes (BFO) process. Infrastructure Replacement Infrastructure Replacement is the removal and replacement of amenities in the parks system and bringing them up to today’s standards, i.e. playgrounds, irrigation systems, tennis courts, etc. when regular maintenance can no longer keep them in a state of good repair.. • Currently there are over 1,200 items valued at over $200 million in the inventory. Each item has a life span and when the time comes, it must be replaced. • Potential new funding mechanisms for the Infrastructure Replacement Program are currently being considered alongside other City funding needs. A sustainable funding source is required to address the equity issues that are seen throughout the system pertaining to old vs. new parks. • Examples of recent and ongoing Infrastructure Replacement projects include: o Playground replacement at Golden Meadows Park o Fossil Creek tennis court replacement o Addition of pickleball lines to Sugar Beet basketball court and Warren and Edora practice courts o Replacement of Library Park irrigation system B.2.1 Packet Pg. 52 Attachment: Park Operation & Maintenance Costs and Design Guidelines (11415 : Sustainable Funding Plan) The below table shows differences between O&M vs. Infrastructure Replacement activities: IRP Components (1,000+ assets) Operations & Maintenance Examples Infrastructure Repair & Replacement Examples (generally over $5k) Hardscapes Snow removal, power washing plazas, sweeping debris Repair sections of cracked walkways, bringing walkway slopes up to ADA standards, repaving parking lots Playgrounds Raking wood mulch (EWF) so that its even, picking up trash, safety inspections and minor repairs for normal wear and tear Replacing equipment, changing surfacing from sand to ADA compliant material (EWF or PIP) Fields Mowing, prepping lines for play, dragging fields for even playability, inspect lighting, aeration, fertilization, equipment maintenance Replacing fencing, lighting, scoreboards, full field renovations Courts Hanging wind screens, sweeping/power washing courts to remove debris, replacing nets Conversion of courts from asphalt to post- tension concrete, new striping on courts, surfacing repairs, new posts, new LED lighting Buildings Clean and stock buildings/restrooms, trash removal, picnic table maintenance, power washing shelters, activating/winterizing drinking fountains Minor renovations like roofing repairs and painting, major renovations like conversion of concession areas to satellite maintenance facility, full building replacements Structures Cleaning and stocking dog parks, activate/winterize/test interactive water features, weeding bike parks, replacing boards on pedestrian bridges, Pedestrian bridge replacements, fencing repairs, water feature renovations, bike park renovations, pedestrian lighting replacement Irrigation Activate/winterize systems, program controllers, manage water, repair pipes/heads/valves Full irrigation system renovation, replacement of water management equipment such as flow sensors, replacement of irrigation controllers Water Monitoring water deliveries, clearing ditches, weed and algae management, minor piping repairs, aeration equipment management Dredging, headgate replacements, large piping replacements, Trails Snow removal, sweeping/cleaning trails, repairs to fencing Replace sections of trails, replacement of fencing General Graffiti removal, vandalism repair, litter removal, inspecting sites for damage, Inspect asset inventory, prioritize repairs and replacements, project management work, B.2.1 Packet Pg. 53 Attachment: Park Operation & Maintenance Costs and Design Guidelines (11415 : Sustainable Funding Plan) maintain signs, equipment maintenance, training staff training and compliance with current standards, coordination preventative maintenance activities with Operations & Maintenance staff, handoff for long term maintenance Typically, park maintenance costs are characterized in cost/per acre. The size of a park has a direct impact on the cost per acre. The larger the park, the less it costs per acre to maintain, as most parks contain equitable amenities regardless of size. On average a community park costs approximately $9,000/acre to maintain annually, and a neighborhood park approximately $7,500/acre to maintain. The major drivers of the cost are: • Acreage- which drives costs of water management & repairs, turf care, and trash & recycling. Over ¾ of O&M costs scale with the size of a park. • Major Amenities- including whether or not the park has a playground or a bathroom. Maintenance of these features drives 15% of costs in a neighborhood park. • Quantity of Minor Amenities- such as sports fields, shelters, and botanical features. Maintenance of these features drives the remaining 10% of O&M costs. A summary of per acre Neighborhood Park O&M costs by year of park construction: Although the two most recent parks are significantly higher than most parks, their per acre cost is also influenced by their smaller acreage. A summary of per acre Neighborhood Park O&M costs by size of park highlights these two most recent parks as the two smallest: B.2.1 Packet Pg. 54 Attachment: Park Operation & Maintenance Costs and Design Guidelines (11415 : Sustainable Funding Plan) While direct comparisons of park maintenance costs are challenging due to varying definitions, overall when compared to other regional municipalities, the maintenance costs for the Fort Collins system appear to be in line with other park systems in the region. Design Guidelines Approved in 2021, the Parks and Recreation Plan provides a comprehensive vision for Fort Collins parks and is the primary guiding tool for determining new park locations and amenities. Key elements of the plan include: • 7 park classifications- formerly there were only 2 (p.115) • Design guidelines and typical amenities for each park classification (p.105) • Population and access-based standards (10-minute walk and 5-minute drive) for major park amenities (p.161) • 10 overarching goals that prioritize equity and inclusion, access to nature, and financial sustainability. (p.213) Linkage to Council priorities are highlighted in bold: 1. Provide equitable access to parks. 2. Provide equitable access to recreational experiences. 3. Expand the active transportation network to support access to parks and recreation. 4. Protect and enhance natural, historic and cultural resources in parks and increase related activities. 5. Enhance the financial sustainability of parks and recreation. 6. Strengthen partnerships to leverage resources for mutual benefit. 7. Ensure parks, paved trails and recreation facilities are operated and maintained efficiently and to defined standards. 8. Promote synergy between parks, recreation and economic health. 9. Improve marketing and communication to enhance operations and user satisfaction. 10. Elevate the design and connection to nature in parks and recreation facilities. B.2.1 Packet Pg. 55 Attachment: Park Operation & Maintenance Costs and Design Guidelines (11415 : Sustainable Funding Plan) Both the executive summary and the full master plan can be accessed online at: https://www.fcgov.com/parksandrecplan/ Design Strategies to Reduce Maintenance Costs New parks constructed over the last few years have incorporated many strategies to help reduce maintenance costs. These strategies include: • More advanced, higher efficiency irrigation systems, resulting in decreased water usage • Post-tensioned concrete slabs for courts, significantly increasing court lifespan • Large native seeded areas in parks, resulting in reduced irrigation demand after establishment • Wider walks for convenient parks maintenance vehicle access and snow removal • 2-year maintenance and establishment conducted by contractor, ensuring park is in good working order when Parks maintenance staff takes over. • Raw water usage significantly reduces irrigation costs over the life of the park • Crime Prevention through environmental design (CPTED) principles to allow for seamless access and safety • The following chart illustrates the composition of costs associated with Neighborhood Park maintenance over the last 4 years: The addition of native seeded areas in parks significantly reduces irrigation demand but does require more maintenance than turf grass during the establishment period (approximately 5 years), then maintenance efforts subside after the seed is established. A key recommendation of the Parks and Recreation Plan is to revisit many of the older parks and increase the native vegetation is those parks, resulting in increased biodiversity, wildlife habitat, pollinator value and an improved natural experience for park users. Park Benefits The benefits of parks are varied and difficult to measure but were obvious during the recent pandemic, as visitor usage increased significantly. Parks play an integral role in the health and well-being of the entire community offering a dose of “Vitamin N”- nature, as part of a holistic B.2.1 Packet Pg. 56 Attachment: Park Operation & Maintenance Costs and Design Guidelines (11415 : Sustainable Funding Plan) system of public spaces. Parks provide essential benefits, not just to residents, but also to the city’s environmental and economic well-being. Parks and Recreation contribute significantly to all of Fort Collins community priorities and all 7 outcome areas. Traditionally, parks have focused on children and sports users primarily, as evidenced by the design of many of the older parks in the city. Today, parks are designed to provide benefit to all, including those who regularly walk a loop trail, sit and quietly reflect, enjoy a family gathering, or connect with nature. In addition, parks must evolve to meet the changing needs of users. Hammocking, slacklining, pump tracks and pickleball are all examples of new and emerging uses in parks that were uncommon only a few years ago, but now are mainstream activities. Multiple studies reveal the importance of play in children’s lives, particularly in our media saturated society. Parks and playgrounds provide opportunities for children to safely take risks, expand their abilities and interact with other children from different backgrounds and cultures. Providing playgrounds that are challenging, unique and engaging is key to driving up park and playground participation and help keep children outside. The addition of natural play features also provides a wide variety of benefits. Fort Collins’ heritage is rich with many traditions. Parks provide a unique platform to celebrate and remember this legacy, such as the sugar beet workers (Sugar Beet Park) and the apple farmers (Twin Silo Park). Parks should be respites for escape and rejuvenation, but also respectfully acknowledge and remember those who have come before us to shape and build our community. In summary, parks contribute significantly to create a more resilient Fort Collins in many ways, including: • Reducing resource demands though decreased irrigation use • Improving safety through stormwater detention and flood mitigation strategies • Advancing environmental stewardship through enhanced wildlife habitat and improved water quality • Contributing to economic health by promoting a high quality of life for residents • Improving social equity by providing equal access to parks city wide Next Steps City staff will bring a conversation about ongoing funding needs for various priorities, including parks and recreation funding, for Council consideration at the April 12 work session. B.2.1 Packet Pg. 57 Attachment: Park Operation & Maintenance Costs and Design Guidelines (11415 : Sustainable Funding Plan) Sustainable Funding Plan 04-12-2022 Council Work Session ATTACHMENT 2 B.2.2 Packet Pg. 58 Attachment: Powerpoint Presentation (11415 : Sustainable Funding Plan) 2Purpose Discuss specific identified funding needs 1.What questions does Council have on the identified funding needs? 2.What questions does Council have on process? 3.Does Council agree with proposed next steps? B.2.2 Packet Pg. 59 Attachment: Powerpoint Presentation (11415 : Sustainable Funding Plan) 3Timeline December CFC January CFC March CFC April Council Work Session •Introduction to sustainable revenue topic •Deep-dive on staff identified needs (Parks & Rec, Transit & Housing) •First Work Session with the full Council •Funding mechanisms & early scenario planning Sustainable Revenue Conversations B.2.2 Packet Pg. 60 Attachment: Powerpoint Presentation (11415 : Sustainable Funding Plan) City Revenue §Sales Tax §Local Total: 3.85% §3 dedicated ¼-cent taxes: §Street Maintenance §Capital Improvement §Open Space §Keep Fort Collins Great §General ¼-cent §Property Ta x §Fees, Fines, Grants 4 B.2.2 Packet Pg. 61 Attachment: Powerpoint Presentation (11415 : Sustainable Funding Plan) 5Governmental Revenue B.2.2 Packet Pg. 62 Attachment: Powerpoint Presentation (11415 : Sustainable Funding Plan) 6Price of Government B.2.2 Packet Pg. 63 Attachment: Powerpoint Presentation (11415 : Sustainable Funding Plan) 7Tax Rate History Expiring 12/31/2025: •¼ cent Street Maintenance •¼ cent CCIP 3.85% Current City Sales Tax rate 2.85% B.2.2 Packet Pg. 64 Attachment: Powerpoint Presentation (11415 : Sustainable Funding Plan) 8 Colorado City Full Stack Sales Tax Rates 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 10.0 Boulder Denver Grand Junction Brighton Colorado Springs Castle Rock Fort Collins Golden Littleton Greeley To tal Tax Rates State County Rate Other Taxes City Rate B.2.2 Packet Pg. 65 Attachment: Powerpoint Presentation (11415 : Sustainable Funding Plan) 9Fort Collins Net Taxable Sales 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% $0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 $4,000 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021Millions City Net Taxble City % of County Sales B.2.2 Packet Pg. 66 Attachment: Powerpoint Presentation (11415 : Sustainable Funding Plan) Identified Funding Needs 10 •Parks built with Capital Expansion Fees •Updates and maintenance are where funding is needed •Masterplan estimates $8-12M gap •25% of transit dollars come from the general fund •Masterplan to build out estimates $8-10M gap •Affordable and attainable housing is community priority •Goal is 10% of housing stock as affordable by 2040 (Currently at 5%) •$8-9.5M gap PA RKS TRANSIT HOUSING CLIMATE ·Our Climate Future (OCF) plan intensifies community efforts to achieve climate, energy, waste goals ·OCF current commitments on track to reach halfway to 2030 carbon goal ·$6M+ annual gap to accelerate community transition from fossil fuels B.2.2 Packet Pg. 67 Attachment: Powerpoint Presentation (11415 : Sustainable Funding Plan) •System includes over 50 parks, 45 miles of paved trails, and 10 recreation facilities •Ongoing Park costs are funded by General Fund; Recreation from GF & program revenues •15-18 parks and the SE Community Center remain to be built 11Parks and Recreation: $9M –$12M Parks and Recreation System Background •2008 Policy Plan goal was to maintain appropriate level of service as the community grows •2021 Master Plan built upon that to also include vision of providing equitable access to parks and recreation experiences, while enhancing financial sustainability of Parks and Recreation •Funding gap of $9-12M identified in master plan to achieve vision B.2.2 Packet Pg. 68 Attachment: Powerpoint Presentation (11415 : Sustainable Funding Plan) 12 An nual Gap ($M)Operations & Maintenance (Daily Ta sks)Infrastructure Replacement Parks $1.0 $8.2 Recreation $0.0 $2.3 Planting Refresh $0.6 To tal $1.0 $11.1 Parks and Recreation: $9M –$12M Operations and Maintenance -the daily tasks needed to keep parks and recreation facilities running and minor repairs to capital assets to keep them in a good state of repair, such as water management, turf care, trash & recycling in parks. B.2.2 Packet Pg. 69 Attachment: Powerpoint Presentation (11415 : Sustainable Funding Plan) 13Parks and Recreation: $9M –$12M Infrastructure Replacement (Capital)-Critical maintenance or repair of existing assets, can also include strategic changes to existing parks or recreation facilities and design elements •Smaller replacements, like replacements of courts or playgrounds, typically require one-time funding and are not likely to increase annual operations and maintenance costs. •Can also include strategic changes to existing parks or recreation facilities and design elements that may trigger slight increases in annual operations and maintenance costs. •$11M annual gap include recreation needs B.2.2 Packet Pg. 70 Attachment: Powerpoint Presentation (11415 : Sustainable Funding Plan) 14TransitMasterPlanBuild-Out B.2.2 Packet Pg. 71 Attachment: Powerpoint Presentation (11415 : Sustainable Funding Plan) 15TransitFundingStudy Tr ansit Funding Study •Update capital and O&M cost projections •Analysis of possible funding sources •Analysis of potential for a fare-free system •Complete Q4 of 2022 B.2.2 Packet Pg. 72 Attachment: Powerpoint Presentation (11415 : Sustainable Funding Plan) Tr ansit Current Anticipated Funding Need 16 Capital Investments: -Amounts for capital projects vary widely year over year -The minimum federal match is 80/20 (grant/local) -Recent federal communication has indicated that future successful grant applicants will have higher local match amounts Operational Expansion: -Based on the 2019 operational budget of approximately $17.5M -Local match funding sources include: the fares/fees, investment earnings, other intergovernmental reimbursements & other smaller miscellaneous revenue sources. B.2.2 Packet Pg. 73 Attachment: Powerpoint Presentation (11415 : Sustainable Funding Plan) 17Transit Funding Need $8M -$10M 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 Base Funding Operations - Local Match Capital Project - Local Match Additional Anticipated Federal Funds Current Level of Funding New Level of Funding ~$17.5M (2019 operating budget) ~$8M -$10M •The area between the lines represents new funds needed to build & operate the TMP •A s ignificant amount of federal grant funding is anticipated: current assumed matches range from 80/20 to 50/50 (grant/local) •Capital projects will be the initial focus with service levels increasing as capital projects are completed •Some service level increase is anticipated due to population growth, higher frequency routes, and route extension B.2.2 Packet Pg. 74 Attachment: Powerpoint Presentation (11415 : Sustainable Funding Plan) Housing Affordable Housing Funding 18 $0 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 $3,500,000 $4,000,000 2015 2016 2017 2018 2019 2020 2021 2022 To tal City Affordable Housing Funding, 2015-2022 Competitive Process CCIP (2016-2025) Average: ~$2.7 million §~$22 million allocated to affordable housing over the last 8 years §Ty pical annual funding amount: $2-3 million §Av erage City subsidy for funded projects: ~$39,000 per unit (new construction) B.2.2 Packet Pg. 75 Attachment: Powerpoint Presentation (11415 : Sustainable Funding Plan) §Since 2000, the community has produced or preserved about 120 affordable units per year on average. §Our community is about 850 units behind in affordable housing production from 2015-2021 §To achieve the 10% affordability goal by 2040, our community needs to more than double the annual production and/or preservation of affordable housing to 282 or more units per year. 19 Housing Affordable Housing Production Current status: 5% of all housing Goal: 10% of all housing by 2040 B.2.2 Packet Pg. 76 Attachment: Powerpoint Presentation (11415 : Sustainable Funding Plan) 20 §To tal City funding need: ~$27 million deferred + $10-11 .5 million annually §Estimated annual ongoing need: $10-11 .5 million (additional $8-9.5 million) §Deferred funding: ~$27 million through 2020 (700 units behind 2020 goal) §As sumptions §City investment of ~$39,000 per unit will continue to yield 1 affordable unit §The current annual production goal (282 or more units per year) will result in 10% of all housing being affordable by 2040 §Other important funding resources (Private Activity Bonds, Low-Income Housing Tax Credits, fee relief, development incentives, private equity) will be available and sufficient to support investments in affordable housing. Housing Funding Needs $8M -$9.5M B.2.2 Packet Pg. 77 Attachment: Powerpoint Presentation (11415 : Sustainable Funding Plan) 21What Could Dedicated Housing Revenue Fund? Expand the City’s competitive process to better support projects seeking to: Acquire land, develop housing, preserve existing housing, support residents. Examples: ·Housing acquisition (redevelopment/preservation) ·Land acquisition ·New construction costs ·Affordable homeownership renovation ·Renovation of affordable rental housing ·Homeownership assistance Expand or initiate City-led efforts as identified in adopted policies including the Housing Strategic Plan, City Strategic Plan, and HUD Consolidated Plan. Examples: ·Land Bank acquisition (expand) ·Extend affordability restrictions ·Fee credits for qualifying projects (expand) ·Develop incentive programs (energy efficiency, voluntary affordability restrictions, etc.) ·Explore redevelopment partnerships ·Other innovative approaches (middle income, mixed income, etc.) Accelerate Implementation of the Housing Strategic Plan B.2.2 Packet Pg. 78 Attachment: Powerpoint Presentation (11415 : Sustainable Funding Plan) 2022 Housing Funding 22 Source*Est. Amount Affordable Housing Fund (General Fund)$1,000,000 HOME (Federal)$725,000 CDBG (Federal)$750,000 Affordable Housing Capital Fund (CCIP)$500,000 TOTAL $2,975,000 •2022 Competitive Process •$4,780,000 in requests •274 affordable homes (179 new construction and 95 renovated/preserved) •Requested City investment ranges from $17,188 -$80,000 per unit * Includes ~$300,000 in unallocated funds from 2021 B.2.2 Packet Pg. 79 Attachment: Powerpoint Presentation (11415 : Sustainable Funding Plan) 23Climate Adopted Goals & Strategy •Reduce greenhouse gas emissions (GHGs) 80% below 2005 levels •Provide 100% renewable electricity with grid and local sources •Achieve zero waste, or 100% landfill diversion Intensify efforts to meet 2030 climate, energy and 100% renewable electricity goals that are centered in equity and improve community resilience •2030 Our Climate Future (OCF) Goals •Strategic Objective 4.1 B.2.2 Packet Pg. 80 Attachment: Powerpoint Presentation (11415 : Sustainable Funding Plan) 24Climate 2030 Projection –Community Carbon Inventory •Key Pathways •Platte River committed to 100% renewable electricity by 2030 •Re duced petroleum use (vehicles) •Diversion of organic waste (universal composting) •Re duced natural gas use (buildings) Natural gas Petroleum Organic waste B.2.2 Packet Pg. 81 Attachment: Powerpoint Presentation (11415 : Sustainable Funding Plan) 25Our Climate Future Pathways & Funding Needs Our Climate Future Outcome OCF Big Move Defined Pathway Funding Pathway Identified Mitigation Universal composting 2 & 10 Larimer County+ (Regional Wasteshed)Partial Natural gas (buildings)6 City, residents, and business No Ground travel (petroleum)4 & 13 City and residents No 100 percent renewable electricity 12 Platte River Power Authority and local solar Ye s Tr ansit 4 Under Discussion Resilience Climate resilience initiatives e.g., preparedness, extreme events response 3 City and local partners No Wa ter:source, quality, efficiency, stormwater Utilities capital and efficiency plans Ye s Pa rks & Recreation 11 Under Discussion Equity Climate equity work/partnerships e.g., low-to- moderate income (LMI) residential efficiency 1 City and local partners No Housing 7 Under Discussion B.2.2 Packet Pg. 82 Attachment: Powerpoint Presentation (11415 : Sustainable Funding Plan) 26Potential Our Climate Future Funding Needs Our Climate Future Outcome Defined pathway Annualized long-term need Mitigation Universal composting Larimer County+ (Regional Wasteshed)TBD Natural gas (buildings)City supported infrastructure to electrify homes $3.5M Ground travel (petroleum)City supported infrastructure for EV charging $2.6M Resilience Climate resilience initiatives City and local partners TBD Example: Community Resilience Hubs City and local partners $0.5M ea. Equity Climate equity work/partnerships City and local partners TBD Example: residential efficiency for LMI homeowners and renters City and local partners $0.5M B.2.2 Packet Pg. 83 Attachment: Powerpoint Presentation (11415 : Sustainable Funding Plan) 27Next Steps Continue project team meetings on regular basis •Develop project and engagement plan •Analyze and articulate efficiencies, savings, financial stewardship •Further research into impacts, timing, and questions Standing item on Council Finance Agenda •Review project work and findings •Bi-monthly agenda item Future Council Work Session Q3/Q4 •Discuss funding mechanisms B.2.2 Packet Pg. 84 Attachment: Powerpoint Presentation (11415 : Sustainable Funding Plan) 28Purpose Discuss specific identified funding needs 1.What questions does Council have on the identified funding needs? 2.What questions does Council have on process? 3.Does Council agree with proposed next steps? B.2.2 Packet Pg. 85 Attachment: Powerpoint Presentation (11415 : Sustainable Funding Plan) B.2.2 Packet Pg. 86 Attachment: Powerpoint Presentation (11415 : Sustainable Funding Plan) DATE: STAFF: April 12, 2022 Sylvia Tatman-Burruss, Sr. Project Manager Jackie Kozak-Thiel, Chief Sustainability Officer WORK SESSION ITEM City Council SUBJECT FOR DISCUSSION Single Family Trash, Recycling and Compost Contracting. EXECUTIVE SUMMARY The purpose of this item is to address Council’s priority (“Explore a Districted System for Garbage, Recycling and Compost”) by providing Council with an overview of trash, recycling and compost contracting for single family homes, an update on community engagement conducted thus far, and seek feedback on next steps for this topic. GENERAL DIRECTION SOUGHT AND SPECIFIC QUESTIONS TO BE ANSWERED 1. Do Councilmembers want staff to continue to pursue contracting? If so, which goals would Councilmembers prioritize? 2. Do Councilmembers have any feedback about the process ahead? BACKGROUND / DISCUSSION One of the adopted Council Priorities is to explore a districted system for garbage, recycling, and compost for single family homes. Districting is a sub-type of a contracted trash and recycling system. To ensure the broadest possible conversation in the community, this document utilizes the term “contracting.” PAST COUNCIL ACTION Council has explored contracting at least twice in Fort Collins: • 1998: Council directed staff to analyze feasibility of waste reduction through trash contracting. • 2008: Council directed staff to again analyze feasibility of waste reduction through districting/contracting. A pilot district was developed, and the project was paused indefinitely before implementation. Elements that have changed since past studies: 1998 2008 Today Number of residential haulers operating in Fort Collins 6 3 4 Ownership Mix of local and nationally-owned Mix of local and nationally-owned Three nationally-owned; one new locally-owned starting service in May Status of consideration Study only Study; pilot district developed and then stopped Under review ALIGNMENT WITH ADOPTED GOALS AND PLANS Contracting would enable actions critical to meeting Fort Collins’ adopted goal to produce zero waste by 2030. Fort Collins 2020 Community Diversion Rate goal was 75%, which was not achieved. In 2020, the Resident ial B.3 Packet Pg. 87 April 12, 2022 Page 2 Diversion rate was 29% and the Community Diversion Rate (combining residential, commercial, and industrial materials) was 52%. Contracting for trash and recycling aligns with several adopted plans and other Council priorities. Those plans include: • Our Climate Future Big Move 2: Zero Waste Neighborhoods • City Plan Principle ENV 5: Create a Zero Waste System • Strategic Plan Environmental Health 4.3 Zero Waste Contracting for single family home trash, recycling and compost also supports the following adopted Council Priorities: • Advance Regionalism: Fort Collins is part of the Regional Wasteshed Intergovernmental Agreement (IGA), which commits partner communities to adopt policies to support waste diversion infrastructure that Larimer County will construct. A facility for yard trimmings and food scraps composting and construction and demolition recycling facility are critical paths to meeting Fort Collins’ Zero Waste and Climate Action goals. We are exploring the possibility that a contract could include flow control to the Larimer County Landfill, which would guarantee our region continues to have access to a public landfill and is also a baseline commitment for Larimer County to construct the compost and construction and demolition recycling facilities. • Accelerate Composting: o A contract provides opportunity for additional yard trimmings collection in Fort Collins. ▪ As noted in the Council materials for the Our Climate Future update (also discussed this same night), composting, or community-wide organic waste diversion, is a critical path for meeting climate goals ▪ Food scraps can be addressed in a contract in the future as the timing for regional food waste composting infrastructure becomes clearer • Flow control supports construction of compost facilities as noted above. • Improve Air Quality: fewer trucks driving along residential roads reduces related air emissions and greenhouse gas emissions • Enhanced Recycling Education: Fort Collins could include educational requirements in a contract for residential trash, recycling, and compost service. It wo uld also ensure all residents could have access to the same educational resources and programs. TRASH CONTRACTING OVERVIEW Types of Trash and Recycling Collection Systems There are four primary systems for residential trash and recycling collection. A s ummary of trash and recycling systems (Attachment 1) includes more details about each type of service: • Pure Open Market: Each household chooses their own hauler for trash and recycling collection. Local government does not play a role in this system. • Open Market with Licensing (Fort Collins’ current system): Each household chooses their own licensed hauler for trash and recycling collection. The local government issues the licenses and may include requirements such as offering recycling and compost collection. • Contracted System (system being considered for Fort Collins): A local government contracts with one or more companies to provide residential trash and recycling collection. • City Hauling Utility: A city owns and operates their own hauling utility using city staff, resources, and equipment. B.3 Packet Pg. 88 April 12, 2022 Page 3 Across the U.S., City Hauling Utilities or Contracted Systems are by far the most common system for single family trash and recycling service. In Colorado, the Pure Open Market is the most common system. This combination of pure open market and very inexpensive landfilling drive Colorado’s low diversion overall. Contracting is found in an increasing number of Colorado communities. Colorado state law allows local governments to contract for single family residential service (defined as having 7 or fewer units). In Colorado, local governments cannot contract for commercial, industrial, or multi-family (defined as having 8 or more units) trash and recycling service. Learnings from Peer Communities City staff researched communities in Colorado which either have explored or have a contracted trash and recycling service in place. Given that contracted service is very common across the U.S., staff focused on Colorado examples since they operate under the same state requirements that would apply to Fort Collins. The one exception is that staff also researched Portland, OR and St. Paul, MN as examples of districted systems since there are few districted examples in Colorado. Specific examples of peer cities researched include: • Colorado communities with contracted single-family trash and recycling service: Arvada, Commerce City, Edgewater, Englewood, Golden, Johnstown, Lafayette, Louisville • Colorado communities that have explored contracted service: Lakewood, Westminster • Additional communities explored for districted examples: Portland, OR and Saint Paul, MN Intended outcomes and benefits of a contracted system identified by these communities include: • Fewer trucks on residential streets resulting in less wear-and-tear on streets • Improved air quality through lower emissions due to reduced trips and truck traffic in neighborhoods • Improved customer service due to the City managing the hauling contract and enforcing performance measures • More recycling and composting options that can be detailed and required through the RFP process • Access to uniform and predictable pricing for a set number of years Potential disadvantages identified include: • Households must pay an opt-out fee if they want to choose their own service provider. • A variety of perspectives exist in the community about the ideal role of local government and some community members do not support this role. • The shift to implement an administrative role in trash hauling for the city o rganization. Most peer communities shifted from a pure open market system to a contract, so they did not have existing staff with this area of specialty. Depending on the way the contract is set up, the city may also manage billing, customer service, and/or trash and recycling bins, which requires transition time and logistics. • Logistics of a districting approach, which would include logistics of creating districts, managing multiple RFP processes, navigating pricing differences between districts, etc. B.3 Packet Pg. 89 April 12, 2022 Page 4 Elements Achieved via Licensing vs Contracting Licensed System Contracted System Recycling and Composting Volume-based pricing for trash service Y X Recycling bundled with trash service for no additional charge Y X Opt-in yard trimmings collection Y X Potential for increased yard trimmings collection (opt-out or bundled service) and future food scraps collection P X Potential for more and consistent recycling education X Fewer Trucks in Residential Neighborhoods Street Maintenance Savings X Improved Neighborhood Aesthetics, e.g., less noise, one day of service per neighborhood X Increased safety X Reduced greenhouse gas emissions X Improved air quality X Pricing Predictable consistent pricing across community X Potential service cost reduction due to efficiencies of servicing every home on the street X Equity & Customer Service Leverage for customer service requirements with metrics and penalties for non-compliance X Enhance equity in trash and recycling service in the community, e.g., enhance communication options for all languages spoken in Fort Collins, develop programs to support low-income community members, provide arrangements for less able-bodied residents X Connection with Other Council Priorities Advance Regionalism: Flow control supports public landfill and is baseline for compost and construction & demolition recycling facilities P X Accelerate Compost: Potential for additional yard trimmings compost options P X Improve Air Quality: Reduction in trucks in residential neighborhoods reduces related emissions X Y = in place in Fort Collins current licensed system P = possible in Fort Collins current licensed system but would require additional policy adoption X = possible in a contracted system in Fort Collins Timeline A contracted project could follow the timeline below, if consistent with Council direction. B.3 Packet Pg. 90 April 12, 2022 Page 5 • April - August, 2022: o Engage with community on contract details until mid -June. A community engagement summary will be provided at the next Council work session. o Work Session to discuss details of a contracted system and outline process for next steps with Council. • August, 2022 - January, 2023: o Staff would develop the Request for Proposal (RFP) with consultant support. o The RFP would be issued and haulers would draft proposals. o Staff would review proposals and negotiate a contract. • 2023 and Beyond: o Staff would share the outcome of the RFP with City Council and community. o Staff would work with the community to prepare for the contracted service rollout. o Service would begin 12-18 months after contract execution. Engagement Phase I Engagement (beginning of project to now): Focus on understanding the goals, priorities and concerns our community has when exploring the idea of contracting for household trash and recycling service. • The general level of engagement along the International Association for Public Participation (IAP2) spectrum is “Consult” with aspects of “Involve” present where goals and proposed outcomes are discussed. o Examples of “consult” tools include seeking public comment on proposed action, presentations to neighborhood groups, HOAs, Boards & Commissions and hosting Open Houses o Examples of “involve” tools include workshops, stakeholder meetings and focus groups to gather in-depth feedback on specific topics within a project. Phase II Engagement (mid-April - mid-June): Focus on the details of a contracted trash and recycling collection system. • Will continue to inform community members on next steps and engage with them on potential options for contracting as the conversation moves forward. • Engagement would take place through the OurCity online engagement platform, online and in -person workshops, and focus groups with disproportionately impacted groups (i.e., seni ors, lower-income residents, non-English-speaking residents, etc.). • A summary of engagement would be shared at the next City Council Work Session. Groups engaged so far: • Community Members • Environmental Groups • Low-Income Housing Organizations • Focused Community Groups • Boards and Commissions • Waste Haulers Community Engagement Summary Over 1,400 community members have spoken with staff, attended one of two virtual Community Conversations, answered questionnaires, sent emails, or left comments on social media or on the Contract for Trash project page letting staff know their goals, priorities, concerns, and thoughts on a communitywide contract for household trash and recycling collections. (Attachment 2) The themes from this engagement are summarized below: B.3 Packet Pg. 91 April 12, 2022 Page 6 Perspectives about concerns expressed by community members: • Prices going up / affordability: A contract can ensure a community-wide price based on efficient service delivery. Cost increases would only be within the terms agreed to in the contract. There are no cost increase protections in a licensed open market system. • A decrease in service levels: A contract could include strict trash / recycling / compost collection service and customer service requirements with penalties for the hau ler not meeting those requirements. There are no such requirements or penalties in an open market system other than a customer choosing to hire a different hauler. • Effects of a monopoly / lack of competition: There is competition in a contracted system, but it happens at the community (or district) level rather than the household-by-household level. In a contracted system, each hauler creates a proposal to match the services requested by the community. These proposals are analyzed based on the cost of service, quality of service and other elements. The contract includes service requirements and the contract can be cancelled if those requirements are not being met by the hauler. Other haulers will continue to service their commercial, multi-family and construction and demolition (and perhaps some homeowner association) customers, so will continue to be in the market to submit competitive proposals for future contracts. In peer city research, other Colorado communities noted they have seen continued competitive proposals when issuing request for proposals at the end of a contract. • Lack of choice in selecting service provider: A household can continue to select their own hauler but would have to pay an opt-out fee. • Impact to haulers that are not awarded a contract: Haulers would have 12-18 months after a contract decision to plan and adjust before the contract went into effect. Potential shifts in service could include the following: o Existing nationally-owned haulers • Could continue to service existing commercial, multi-family and construction site customers • Could continue to service existing HOA contracts (even if HOAs roll into contract at end of current term) • Could shift staff to servicing accounts in adjacent communities • Is significant staff turnover now; possible that existing attrition over the 12-18 month roll-out period would prevent any jobs ending • Hauler awarded the contract would likely be adding staff o New locally-owned hauler • Could adjust business model to service other Northern Colorado communities B.3 Packet Pg. 92 April 12, 2022 Page 7 Hauler Engagement Fort Collins has seen many changes in residential haulers in the past few years: • At the end of 2020, locally-owned hauler Gallegos Sanitation was purchased by nationally-owned hauler Republic Services • At the end of 2021, locally-owned hauler Ram Waste was purchased by nationally-owned Waste Connections • Locally-owned Timberline Hauling started service in the last few years and opted to close their business and give their customers to Ram Waste / Waste Connections in February 2022 • A new locally-owned hauler, Mountain High Disposal, has formed and plans to start service in Fort Collins in May 2022 City staff has engaged with haulers serving Fort Collins and other area residential haulers and have learne d: • The nationally-owned haulers that currently service Fort Collins and a locally-owned regional hauler have expressed support for contracting or continuing the current licensing system. • The new locally-owned hauling company does not support a contr acted system and recommends Fort Collins continue in a licensed system. • All haulers have expressed appreciation for having been engaged early in the process. NEXT STEPS If consistent with feedback from Council at the April 12 Work Session, staff will: • Continue analysis of the contracting project; • Begin Phase II of community engagement, focused on the details of a contracted residential trash and recycling system; and • Return to discuss contracting details with Council at a future Work Session. ATTACHMENTS 1. Types of Trash and Recycling Systems (PDF) 2. Contracting Community Engagement (PDF) 3. Natural Resources Advisory Board (excerpt) (PDF) 4. Powerpoint Presentation (PDF) B.3 Packet Pg. 93 Page 1 of 5 Details of Systems for Single-Family Trash and Recycling Service in Colorado Type of Single-Family Trash and Recycling Collection System Pure Open Market Licensed Open Market Contracted Municipal Hauling Utility Local Example •Wellington •Estes Park •Fort Collins’ current system •Boulder •System Fort Collins is considering •Johnstown •Golden •Loveland •Longmont Hauling System Details Open Market system with no local government involvement Haulers must obtain a license from the local government to provide trash and recycling service Local government contracts with one hauler for the whole community or one per district to provide trash and recycling service City employees in City-owned vehicles collect trash and recycling and yard trimmings Trash and Recycling Service Details Often focused on larger trash carts or unlimited trash service for a fixed price; recycling opt-in for an extra fee Local government can determine some elements of service. In Fort Collins, our license requires a Pay-As-You- Throw system, meaning trash pricing is based on size of trash cart subscription and up to two 96-gallon recycling carts are included for no additional charge Service details are part of the contract for service. It can include a Pay-As-You- Throw system, meaning trash pricing is based on size of trash cart subscription and up to two 96-gallon recycling carts are included for no additional charge Local government determines the services provided to the community and at what cost. Loveland and Longmont have Pay-As-You-Throw volume based pricing for trash service, bundle in recycling service, and offer optional yard trimmings collection service (Longmont’s service also includes food scraps) Typical participation in recycling and yard trimmings collection programs in this system 15-20% of residents typically opt-in and pay extra for recycling or yard trimmings service In Fort Collins, 95% of residents select recycling service as it is bundled with trash service. Fort Collins has opt-in yard trimmings service for an extra fee with ~15% of residents participating. In a contract system, Fort Collins would continue to bundle recycling with trash Fort Collins would need to determine if it wants to continue yard trimmings service as opt-in or shift to opt-out or bundled service (85-95% of residents typically select services that are bundled with trash. 15-20% of residents typically opt-in and pay extra for services) 85-95% of residents typically select services that are bundled with trash. 15-20% of residents typically opt-in and pay extra for services. ATTACHMENT 1 B.3.1 Packet Pg. 94 Attachment: Types of Trash and Recycling Systems (11417 : Single Family Trash, Recycling and Page 2 of 5 Type of Single-Family Trash and Recycling Collection System Pure Open Market Licensed Open Market Contract Municipal Hauling Utility Who selects the hauler Each household selects their own household and negotiates pricing individually Each household selects their own household and negotiates pricing individually Local government selects the hauler Residents can utilize a different hauler and would be subject to an opt-out fee Details: Local government drafts a Request for Proposals that describes the details of service for their community. Haulers then draft proposals to match that request and compete based on price, quality of service and other elements Local government is the hauler Residents can utilize a different hauler and would be subject to an opt-out fee How pricing is determined Pure open market; tends to be higher pricing and/or less recycling / yard trimmings service offered Hauler determines pricing per household through licensing requirements (for example, Fort Collins requires a volume-based pricing for trash with bundled recycling, but each hauler determines their own rates within that structure) Price is determined through a competitive purchasing process to secure “bulk purchase” pricing Pricing is then set for the duration of the contract with increases only allowed under pre-determined circumstances Through local government systems to determine cost for providing service Who negotiates pricing Each household Each household Local government Determined by local government Level at which haulers compete Household by household Household by household Community- or district-wide via competitive bidding process Service provided by local government B.3.1 Packet Pg. 95 Attachment: Types of Trash and Recycling Systems (11417 : Single Family Trash, Recycling and Page 3 of 5 Type of Single-Family Trash and Recycling Collection System Pure Open Market Licensed Open Market Contracted Municipal Hauling Utility How many haulers service each neighborhood As many haulers as have customers on that street. Can be multiple haulers providing service on multiple days of the week. As many haulers as have customers on that street. Can be multiple haulers providing service on multiple days of the week. The number of haulers tends to vary over time as new hauling businesses form and then often consolidate. Fort Collins has had as many as 6 and as few as 3 residential haulers. One hauler serves each district, so all trash, recycling and yard trimmings collection happens on one day in a neighborhood by one company, unless a resident on that street chooses to pay an opt-out fee and hire a different hauler (can be one or many districts in the community, but each is serviced by one hauler) Municipal hauling services all single family homes in the community, unless a resident on that street chooses to pay an opt-out fee and hire a different hauler Typical pricing Can be higher due to inefficiencies of customers being spread out. Can be higher due to inefficiencies of customers being spread out. Can provide lower service costs because fixed costs for providing service are spread among more customers and the greater efficiency of servicing every household on a neighborhood street Can provide lower service costs because fixed costs for providing service are spread among more customers and the greater efficiency of servicing every household on a neighborhood street Road maintenance impacts (wear and tear on a residential street of 1 trash truck is equivalent to 1200 passenger cars)* Potential for higher community road maintenance costs due to multiple trash and recycling trucks on residential streets each week Potential for higher community road maintenance costs due to multiple trash and recycling trucks on residential streets each week Potential for lower community road maintenance costs due to one trash and recycling truck on residential streets each week (estimated cost savings for Fort Collins in 2008: $170k / year) Potential for lower community road maintenance costs due to one trash and recycling truck on residential streets each week * Source: Trash Services Study Final Report, R3 Consulting 2008 B.3.1 Packet Pg. 96 Attachment: Types of Trash and Recycling Systems (11417 : Single Family Trash, Recycling and Page 4 of 5 Type of Single-Family Trash and Recycling Collection System Pure Open Market Licensed Open Market Contract Municipal Hauling Utility Air Quality and Climate impacts Potential for more greenhouse gas emissions and air quality impacts from multiple trash and recycling trucks in each neighborhood each week Potential for more greenhouse gas emissions and air quality impacts from multiple trash and recycling trucks in each neighborhood each week Potential for less greenhouse gas emissions and air quality impacts due to one trash and recycling truck in each neighborhood each week Additional opportunity for lower emissions because contracting provides leverage to request lower emission or electric vehicles to service neighborhoods Potential for less greenhouse gas emissions and air quality impacts due to one trash and recycling truck in each neighborhood each week Additional opportunity for lower emissions if municipality invests in lower emission or electric vehicles to service neighborhoods Customer Service requirement Customer service negotiated by each household with their hauler Customer service negotiated by each household with their hauler Customer service requirements included in the contract with penalties for non-compliance Customer service provided by the municipality Low income programs n/a n/a Potential for programs to support low-income community members Potential for programs to support low-income community members Homeowner’s Associations Many Homeowners Associations (HOAs) elect to use a contract system to achieve a lower price and other services for their HOA members rather than the open market system. Many Homeowners Associations (HOAs) elect to use a contract system to achieve a lower price and other services for their HOA members rather than the licensed open market system. This is the system many Homeowners Associations (HOAs) utilize to achieve a lower price and other services for their HOA members. A city-wide or district-wide contract could provide similar types of benefits. In a city contracted system, some cities allow HOAs to opt in to the city’s contract while others require HOAs join the city contract once their existing contract expires. Homeowners Associations are generally serviced by the municipality Number of districts n/a n/a Multiple districts allow multiple haulers to service single family homes in the community. It also introduces the possibility of different pricing in different parts of the community for the same service, among other detailed logistics. n/a B.3.1 Packet Pg. 97 Attachment: Types of Trash and Recycling Systems (11417 : Single Family Trash, Recycling and Page 5 of 5 B.3.1 Packet Pg. 98 Attachment: Types of Trash and Recycling Systems (11417 : Single Family Trash, Recycling and Engagement Phase I Engagement (beginning of project to now): Focus on understanding the goals, priorities and concerns our community has when exploring the idea of contracting for household trash and recycling service. •The general level of engagement along the International Association for Public Participation (IAP2) spectrum is “Consult” with aspects of “Involve” present where goals and proposed outcomes are discussed. o Examples of “consult” tools include seeking public comment on proposed action, presentations to neighborhood groups, HOAs, Boards & Commissions and hosting Open Houses This list represents a comprehensive set of community members and organizations staff members have connected within the process thus far. Some conversations have been in-depth while others have been simpler touchpoints, e.g., replies to emails or a commitment on behalf of an organization to share out the opportun ities with their networks. •Community Members o Engaged the broad Fort Collins community using multiple platforms including soc ial media messaging, virtual community conversations (open houses), online website and message boards, email, phone calls, and a survey. Over 1,400 community members engaged in one or multiple of the forms listed. o Used social media and radio to promote Spanish language survey to Latino/Latina/Latinx community members. •Environmental Groups: o Sustainable Living Association o CSU Zero Waste Club o Next Level Neighborhoods •Low-Income Housing Organizations: o CARE Housing o Housing Catalyst o Harmony Village Mobile Home Park Spring Cleanup Event (scheduled for 4/23) •Focused Community Groups: o Chamber of Commerce: Local Legislative Affairs Committee (LLAC) o Downtown Development Authority (declined a meeting) o Black and African American Cultural Center o Queen’s Legacy Foundation o Nonprofit Human Service Grantees •Boards and Commissions: o Natural Resources Advisory Board o Economic Advisory Board (visiting in phase II) o Downtown Development Authority (declined a meeting) o Homeowners Associations o Meeting with Clarendon Hills HOA 4/7 •Waste Haulers o Republic Services o Waste Management o Waste Connections o Mountain High Disposal ATTACHMENT 2 B.3.2 Packet Pg. 99 Attachment: Contracting Community Engagement (11417 : Single Family Trash, Recycling and Compost Contracting) Natural Resources Advisory Board March, 2022 Curbside Trash and Recycling Contract – Caroline Mitchell, Waste Reduction and Recycling Program Manager, shared work being done surrounding the Council priority to explore contracting for household trash and recycling services. City staff will ask what goals Councilmembers would prioritize in a contract during an upcoming work session on April 12. Discussion | Q + A 1.Victoria – Q – You mentioned that Fort Collins has a more robust licensing system, why is that and what makes Fort Collins unique in that? Caroline – A – The norm across the country is either have contracted services or municipal services. We are unique not only because we don’t do that, but because we also have a strong commitment to waste reduction. Fewer communities license their hau lers. 2.Hillary – When Golden was looking at the same process, Hillary was part of their Sustainability Advisory Board. It is a lot of work, so kudos to the team for moving that forward and it is exciting to think Fort Collins can take the next step as it h as been a long time coming. 3.Barry – Q – Has there been discussions with the individuals who drive and man the trucks who are local members of our community; what are their perspectives? If the city were to adopt, what would be the effects of the employment for these local people? Caroline – A – To clarify we are not discussing the City taking over the hauling business itself, but to issue a contract to haulers. One decision point is if it would be one contract or create districts and contract multiple haulers. We have not conducted engagement with drivers specifically. One key element is that these companies are nationally owned, so it is safe to say there are other communities in Northern Colorado that would continue to use their service. The specifics of what would happen to each company would vary. Barry wanted to express concern for the people who do the actual work and if their perspectives were being considered in the deliberation. 4.Hillary – Q – How do HOAs play into this and what about commercial recycling and trash? Caroline – A – Colorado State Law states that municipalities are not allowed to contract or service for commercial or multifamily structures of eight units or more. The contract would only apply to single family homes. We are gathering contact information for HOA’s who currently are contracted to get their feedback. We are thinking they could either opt in or just roll into the City once their current contracts expire. 5.Hillary – Q – What percentage of trash hauling is single family vs commercial and multifamily complexes? Caroline – A – We don’t have the number of locations, but volume-wise it is about 50/50. 6.Kevin – Q – Does that 50/50 still apply in terms of miles traveled? Caroline – A – We don’t have analysis of the numbers of miles traveled by the vehicles. We would have to dial in with traffic engineers to see if there is a way we could get that. Kevin would be interested to see if the numbers based on volume holds up against other impacts. 7.Drew – Q – What is the timeline to offer to Council, to switch to a contract? Caroline –A – We are working toward a decision on which hauler by the end of the year. There will be some gap time between making the decision and implementation as there are a lot of logistics involved. Based on conv ersations with haulers, we are looking at ATTACHMENT 3 B.3.3 Packet Pg. 100 Attachment: Natural Resources Advisory Board (excerpt) (11417 : Single Family Trash, Recycling and Compost Contracting) Natural Resources Advisory Board March, 2022 anywhere between six months and a one-year gap. 8. Victoria – Q – What is the best way to provide feedback. Caroline – A – For individual response I am happy to gather that now or you can through the questionnaire. I f you want to provide feedback as NRAB, that is usually shared with Council through a memo. Honore – This will not be the only opportunity to weigh in. Staff also tends to attach minutes to the materials for City Council to see thoughts and questions. 9. Barry – Speaking for himself: No strong perspectives right now. Trusts how staff and Council will approach this issue. 10. Kevin echoes Barry’s thoughts. The areas that are being focused on are appropriate and correlate to the City and Council’s goals. They are going in the right direction and supports those focus areas. Would be interested in weighing in once they get more feedback from the work session and when there are more specific things on the table. 11. Drew supports the general idea of pushing toward a contr act system. Recommends being cautionary in rushing the gap period, as a year seems quick. B.3.3 Packet Pg. 101 Attachment: Natural Resources Advisory Board (excerpt) (11417 : Single Family Trash, Recycling and Compost Contracting) Single Family Tr ash, Recycling and Compost Contracting April 12, 2022 City Council Work Session Caroline Mitchell Kira Beckham Sylvia Tatman-Burruss Ashley Pace DeAngelo Bowden Sheela Backen ATTACHMENT 4 B.3.4 Packet Pg. 102 Attachment: Powerpoint Presentation (11417 : Single Family Trash, Recycling and Compost Contracting) 2Questions for Council 1.Do Councilmembers want staff to continue to pursue contracting? If so, which goals would Councilmembers prioritize? 2.Do Councilmembers have any feedback about the process ahead? B.3.4 Packet Pg. 103 Attachment: Powerpoint Presentation (11417 : Single Family Trash, Recycling and Compost Contracting) 3Strategic Alignment City Plan Council Priority: Explore Districted System for Garbage, Recycling and Compost Principle ENV 5: Create a Zero Waste system. Environmental Health 4.3 Zero Waste Strategic PlanCouncil Priority Our Climate Future Big Move 2: Zero Waste Neighborhoods Aligned: Advance Regionalism Accelerate Composting Improved Air Quality Enhanced Recycling Education Critical Path to Achieving Climate Goals (composting) B.3.4 Packet Pg. 104 Attachment: Powerpoint Presentation (11417 : Single Family Trash, Recycling and Compost Contracting) 4Connection to Regional Collaborations Regional Wasteshed Implementation Larimer County Infrastructure: Supportive policies (contracting includes elements supportive of the wasteshed implementation) Partner Communities B.3.4 Packet Pg. 105 Attachment: Powerpoint Presentation (11417 : Single Family Trash, Recycling and Compost Contracting) 5 Municipal Hauling Utility Contracted System Open Market with Licensing Pure Open Market Systems for Tr ash and Recycling Collection City RoleEach household chooses their own hauler for trash and recycling collection.No role of local government. Each household chooses their own licensed hauler for trash and recycling collection.City license can support safety requirements and/or policy goals like including recycling. This is Fort Collins’current system. A municipality contracts with one or more companies to provide residential trash and recycling collection. This is the system under consideration. A municipality owns and operates their own hauling utility using city staff,resources and equipment. B.3.4 Packet Pg. 106 Attachment: Powerpoint Presentation (11417 : Single Family Trash, Recycling and Compost Contracting) 6Contracting vs Open Market M M M M M M M M M W T F F M TW Open Market System: multiple haulers, serviced on different days of the week Contract System: single hauler, serviced on same day of the week B.3.4 Packet Pg. 107 Attachment: Powerpoint Presentation (11417 : Single Family Trash, Recycling and Compost Contracting) Contracting Application 7 Contract WOULD apply to •Single family homes •Multi-family complexes of 7 units or fewer Contract would NOT apply to •Multi-family complexes of 8 units or more •Businesses •Construction sites, industrial recycling Contract MAY apply to •Homeowner’s associations (HOAs) that contract for trash & recycling service now •Could opt in to City contract at end of existing contract •City could require HOAs to join at end of existing contract B.3.4 Packet Pg. 108 Attachment: Powerpoint Presentation (11417 : Single Family Trash, Recycling and Compost Contracting) 8Past Fort Collins Consideration of Contracting 1998 2008 Now Number of residential haulers operating in Fort Collins 6 3 4 Local or nationally-owned haulers Mix Mix 3 nationally- owned, 1 new locally- owned Status of consideration Study only Study; pilot district developed and then stopped Under review Benefits identified Street maintenance savings ($170k+ / year in 2008) Fewer trucks, reduced emissions, reduced noise Updating benefits research B.3.4 Packet Pg. 109 Attachment: Powerpoint Presentation (11417 : Single Family Trash, Recycling and Compost Contracting) Researched 12 communities that have or explored contracted systems. •Arvada •Commerce City •Edgewater •Golden •Johnstown •Lafayette •Louisville •Lakewood •Westminster •Englewood •Saint Paul, MN •Portland, OR Benefits identified by these communities: •Fewer trucks in neighborhoods •Improved air quality and lower truck emissions •Improved customer service •More recycling and composting options •Access to uniform pricing Disadvantages identified by these communities: •Households must pay opt- out fee if they want to choose their own provider •Perspectives about the ideal role of government •The shift to an administrative role of the city organization •Logistics of a districting approach 9Peer Community Findings B.3.4 Packet Pg. 110 Attachment: Powerpoint Presentation (11417 : Single Family Trash, Recycling and Compost Contracting) What goals can be achieved with existing licensing system? •Currently have:Vo lume-based pricing for trash service;recycling bundled with trash for no additional charge;and opt-in yard trimmings collection •Potential to achieve with additional policy:Increased composting,e.g.,increased yard trimmings collection and future food scraps;advancing Council priorities such as regionalism (through flow control)and accelerated composting 10Elements Addressed by Contracting Fewer Trucks in Neighborhoods •Street maintenance savings •Improved neighborhood aesthetics •Less noise •One day of service / neighborhood •Increased safety •Reduced greenhouse gas emissions •Improved air quality Pricing •Predictable consistent pricing across community •Potential service cost reduction due to efficiencies of servicing every home on the street Customer Service •Leverage for customer service requirements •Metrics and penalties for non-compliance •Enhanced equity in service, e.g., low-income programs, increased accessibility, and more What can only be achieved via a Contracting system? Bottom Line: Many elements can only be achieved through contracting, though Council could address some of the goals, e.g., increased composting, in the licensed hauler system B.3.4 Packet Pg. 111 Attachment: Powerpoint Presentation (11417 : Single Family Trash, Recycling and Compost Contracting) 11CommunityEngagement Who we have engaged •Community members •Haulers •Chamber of Commerce •Downtown Development Authority •Natural Resource Advisory Board •Environmental Groups How we have engaged •Community Conversations •Questionnaire (1300 responses) •Presentations to groups •Individual conversations •Newsletters: CityNews, FortShorts, Climate Action etc. •Radio advertisements •Press release / newspaper article Engagement focus: What goals would you have for a contracted trash and recycling system? What concerns would you have about a contracted system? What do you prioritize in a trash and recycling hauler? B.3.4 Packet Pg. 112 Attachment: Powerpoint Presentation (11417 : Single Family Trash, Recycling and Compost Contracting) 12Feedback Heard So Far Goals of a contracted system •Fewer trucks in neighborhoods •Affordable, equitable pricing •Improve / maintain customer service •Increased yard trimmings collection Important when selecting a trash / recycling service provider •Consistent, reliable service •Affordable price •Responsive customer service •Service options that fit the household’s needs •Options for yard trimmings/compost collection Concerns with a contracted system •Prices going up/ affordability •A decrease in service levels •The effects of a monopoly / lack of competition •Lack of choice / being stuck with an unwanted service provider •Impact to haulers and their employees if not awarded a contract From Haulers •Existing haulers supportive of contracting or continued licensing system •New hauler prefers licensing system •Appreciate early and in-depth engagement B.3.4 Packet Pg. 113 Attachment: Powerpoint Presentation (11417 : Single Family Trash, Recycling and Compost Contracting) 13Next phase of engagement Next Phase of Engagement: Focused on Elements of Contracted Service One district or many? Ya rd trimmings collection service: include? Opt-in vs opt-out vs bundled service? Flow control of trash? Billing, customer service, carts: City-owned or hauler-owned? Share updated analysis re: air quality, street impacts of reduced truck traffic HOAs (homeowner associations): Include when current contracts expire? Low-income program options B.3.4 Packet Pg. 114 Attachment: Powerpoint Presentation (11417 : Single Family Trash, Recycling and Compost Contracting) 14Next Steps Involves Council and Community Apr–Aug City Staff Sep -Jan Involves Council and Community 2023+ •Engage with community re: contract details •Next Council Work Session re: contract details, including Council next steps •Develop RFP with consultant support •Issue RFP •Haulers draft responses •Review RFP •Negotiate and award contract •Share outcome of RFP process, prepare for new contracted service •Roll-out new service 12 -18 months after contract adoption B.3.4 Packet Pg. 115 Attachment: Powerpoint Presentation (11417 : Single Family Trash, Recycling and Compost Contracting) 15Questions for Council 1.Do Councilmembers want staff to continue to pursue contracting? If so, which goals would Councilmembers prioritize? -Increased composting -Fewer trucks in neighborhoods -More consistent pricing -Equity options -Customer service 2.Do Councilmembers have any feedback about the process ahead? B.3.4 Packet Pg. 116 Attachment: Powerpoint Presentation (11417 : Single Family Trash, Recycling and Compost Contracting) B.3.4 Packet Pg. 117 Attachment: Powerpoint Presentation (11417 : Single Family Trash, Recycling and Compost Contracting) 17What would happen to a hauler that wasn’t awarded a contract? •Existing nationally-owned haulers •Could continue to service commercial, multi-family and construction site customers •Could continue to service existing HOA contracts (even if HOAs roll into contract at end of current term) •Could shift staff to servicing accounts in adjacent communities •Is significant staff turnover now; possible that existing attrition over the 12-18 month roll-out period would prevent any jobs ending •Hauler awarded the contract would likely be adding staffing •New locally-owned hauler •Could adjust business model to service other Northern Colorado communities Haulers would have 12-18 months to plan and adjust Existing haulers have many other customers in Fort Collins and surrounding areas B.3.4 Packet Pg. 118 Attachment: Powerpoint Presentation (11417 : Single Family Trash, Recycling and Compost Contracting)